INR at Alltime Low: Rupee falls beyond 74 per US dollar

Weak global trends and Yes Bank crisis impacted on the rupee.

The Sensex also came under strong selling pressure today, dropped over 1,400 points.

The Indian rupee now slowed past 74 levels from the US dollar following the Reserve Bank of India took charge of capital-starved Yes Bank, raising the risk-off opinion fueled by raising coronavirus instances in India.

The rupee now traded in a range of 73.69 to 74.08 from the US dollar in comparison with previous near 73.31. But, rupee pared some declines afterward and traded in 73.67 from the US dollar.

1) Denting the national threat sentiment, RBI on Thursday took charge of Yes Bank, India’s fifth-largest private business lender, and restricted entrance to $50,000 citing deterioration in the bank’s financial position.

RBI has put stating it’d work to get a revival plan for your creditor, taking over from the board for 30 times and Yes banking under a moratorium.

“RBI’s moratorium on Yes Bank is credit-damaging because it impacts timely payment of bank depositors and lenders,” said Alka Anbarasu of Moody’s Investors Service.

2) Yes Bank’s seizure by the authorities is arriving at a time when India’s slowing economy is confronted with problems of coronavirus, stated Zephyr Financial creator Arjun Parthasarathy, as quoted by Bloomberg.

“The consequence of Yes Bank’s collapse will be felt across all markets together with Sensex, Nifty falling sharply, rupee weakening and charge markets getting more suspended and illiquid. There might be a trip to security to government bonds.”

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