InvestorQ : Why is the rupee falling so badly in the last few days and where will rupee find support?
Aashna Tripathi made post

Why is the rupee falling so badly in the last few days and where will rupee find support?

Answer
user profile image
Tisha Malhotra answered.
6 months ago


In the last 10 years, the rupee has appreciated seven times against the dollar in March but this year, the rupee has dropped to a 16-month low of Rs.73/$. This has largely to do with the unexpected Coronavirus outbreak that threatens to derail global growth. The general expectation is that the Yuan may be allowed to weaken impacting all other currencies including the rupee. With the riskiest assets being offloaded, emerging markets and EM currencies have suffered the most. The OECD has already cut India’s growth projection by a steep 1.1 percentage point to 5.1% for FY21. Consistent FII selling is also adding to the problems of the rupee which has now gone beyond 73 in a long time. The rise of safe-haven gold and even the dollar to some extent has weighed on the rupee. Where it will find support will depend on RBI and it could perhaps experiment intervening at 74.