Amid the corona virus spread, the impact in the Indian economy has gotten worse as the rupee dropped by 82 paise to hit 74.50 against the US Dollar in the early trade.
On the other hand domestic stock markets nosedived to a 30-month low as the benchmark index Nifty 50 slid below the 10,000 mark tracking global markets. Those losses came after the World Health Organization (WHO) late on Wednedsay declared the new coronavirus (COVID-19) a pandemic, and expressed deep concern over the “alarming levels of inaction”.
Forex traders said market participants turned jittery amid mounting fears of a coronavirus-led economic slowdown.
The rupee had settled at 73.68 against the US dollar on Wednesday.
Though weakening of the US dollar overseas and easing crude oil prices supported the rupee, traders believe there are mounting fears of recession in major economies due to the coronavirus outbreak.
Following the announcement, President Donald Trump suspended all travel from Europe, excluding the UK, to the US for the next 30 days to stop the spread of the virus.
Brent crude futures, the global oil benchmark, fell 5.53 per cent to USD 33.81 per barrel.
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