Fall in value of Indian rupee against dollar

The Indian Rupee is continuously going downward on Tuesday it touch Rs 74 against the dollar value as corona virus panicked the investor which directly impact in deteriorating the financial market. At inter-bank foreign exchange the domestic currency started the session with a massive plunge and it touched Rs 74.08 before starting a recovery. On weekly basis Indian rupee has lost around 2.26%. The reason for the deteriorating of the rupee value is also because of the foreign investment as the market is also crashing so the foreign investor is not showing their interest in the investment in Indian market which affect the rupee value. Rising food prices pushed up retail inflation in November to more than three year high, the industrial sector output shrank continuously which shows the deepening slowdown in the economy. Rising inflation and fiscal slippage resist the rupee value to appreciate. Overall macro-economy is not stacking up well in terms of fiscal problem and sluggish growth. 

The reasons were many: the restriction over Yes Bank by RBI, corona virus fear that shaken the economy worldwide prompting a global stock sell-off and uncertainty over whether RBI would turn to a rate cut to help the counter-act the effects of the virus outbreak on the economy. Yes Bank seizure by government is coming at the time when India is facing slowdown in the economy due to the corona virus effect.

https://economictimes.indiatimes.com/markets/forex/rupee-dives-54-paise-to-73-87-against-dollar/articleshow/74517528.cms