Rupee Plunges To 74.29 Against Dollar Amid Foreign Fund Outflows

Tracking yet another meltdown in the equity markets and sustained foreign fund outflows, the rupee on Monday witnessed significant weakening in afternoon trading. At 4 pm, the currency had plunged to 74.29 against the US dollar, slipping 38 paise from the previous closing of 73.91. Earlier, in the morning, the rupee had opened weak at 74.07.

Forex traders told news agency PTI that investors are on tenterhooks amid mounting fears of a coronavirus-led economic slowdown, even after the Reserve Bank stepped in to maintain sufficient liquidity in the panick-stricken currency market. Meanwhile, the RBI on Friday said it is closely monitoring the current global situation and assured that it will take all steps to keep markets adequately liquid and stable.

"The RBI is closely and continuously monitoring the rapidly evolving global situation and will take all necessary measures to ensure that money, debt and forex markets remain adequately liquid and stable, and continue to function normally," the central bank said had in a statement.

The RBI earlier also announced measures to infuse liquidity in the foreign exchange market, including the US dollar swaps worth $2 billion.