Rupee weakens as COVID-19 continues to weigh on investor sentiment

Indian rupee weakened against US dollar on Wednesday, tracking persistent foreign fund outflow and tepid cues from global markets as concerns over the impact of Coronavirus outbreak continued to weigh on investor sentiment.

Foreign Institutional Investors (FIIs) sold equity shares worth Rs 2,415.80 crore on Tuesday, exchange data showed.

The death toll due to the deadly disease across the world mounted to 3,123 and the number of confirmed cases surpassed 91,783 (80,303 in China alone), official media reported. World Health Organisation (WHO) has declared it a global health emergency.

Meanwhile, Reserve Bank of India (RBI) said that it will take appropriate actions to preserve financial stability in the financial market amid growing Coronavirus fear.

On the global front, US dollar held near to five-month lows against the yen after US Federal Reserve’s emergency half percentage-point rate cut sparked more fears about the impact of Coronavirus and sent treasury yields tumbling to record lows.

The partially convertible currency is currently trading at 73.55, weaker by 36 paise from its previous close of 73.19 on Tuesday. The currency touched a high and a low of 73.5800 and 72.9050, respectively.