The Indian rupee on Friday plunged by 63 paise to settle at 72.24 against the US dollar, amid the heavy sell-off in the equity market and sustained foreign fund outflows.
Other Asian currencies were also weak as investors dumped emerging market assets to seek the safety of US treasuries and other assets like gold amid the rapid spread of coronavirus epidemic outside China. “Foreign outflows of around $1.5 billion had put pressure on the rupee,” said an analyst. Analysts said the fall in crude oil prices provided some respite to the Indian currency.
According to economists at Oxford Economics, if the coronavirus outbreak becomes a global pandemic, $1 trillion could be wiped off the world economy, with recessions in the United States and the eurozone.
Bank of America Corp economists warned clients Thursday that they now expect 2.8 per cent global growth this year, the weakest since 2009. A global recession is likely if coronavirus becomes a pandemic, and the odds of that are uncomfortably high and rising with infections surging in Italy and Korea, Moody’s Analytics said on February 26.
There will be an impact across sectors and supply disruptions, alongside the quarantine measures being undertaken in China and other countries would dent supply chains across geographies.
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines