On Monday, the US Dollar Indian Rupee (USD/INR) exchange rate rose for the fifth consecutive day. The pair gained 1.8 percent in the previous week, settling at 74.98 on Monday. As of 11:00 am, the USD to INR is currently trading at 75.35. On April 12, the BSE Sensex plummeted and finished in the red. As a result, the Sensex fell by 3.44 percent, or 1707.94 points. As a result, at 4:10 p.m. IST on Monday, the session ended at 47,883.38. Likewise, the NIFTY fell by 3.53 percent, or 524.05 points, to 14,310.80.
The rupee is under pressure as companies in India’s wealthiest state grapple with the country’s current stringent covid restrictions. As the number of new cases per day surpasses 168,000, India has surpassed Brazil as the country with the second-highest number of covid cases after the United States.
Maharashtra, India’s wealthiest state and home to the country’s financial hub, is at the heart of the rising COVID-19 cases. Non-essential stores, theatres, gyms, and bars have been forced to close before they have had time to recuperate from the previous nationwide lockout.
Maharashtra’s business operation accounts for roughly 15% of the country’s GDP and is critical to India’s economic recovery.
The US Dollar is currently trading higher against the Indian Rupee. The US Dollar Index, which tests the greenback against a basket of major currencies, is currently trading at 92.27, up 0.14 percent.
It is expected for Indian Rupee to depreciate further but if you are interested in knowing the yearly forecast for the currency pair, do check out our blog on USD-INR forecast for 2021.