While the Dollar was trading at 1.233 to a Euro in early January 2021, it is currently trading at 1.189 to a Euro and has gained over 3.5 per cent. As several states are now considering more stringent lockdown measures, market participants are concerned over delay in the recovery of the economy, that was hit hard in 2020-21 by the pandemic.Īlso in Explained | Will 2021 be a repeat of 2020 for the Indian economy?īesides, the strengthening of dollar in line with expectations of better growth in the US economy, has also put pressure on the Rupee. Rising Covid numbers - over 1.6 lakh fresh daily cases - have emerged as a key concern. What are the key reasons for the decline?
Thai Baht and Indonesian Rupiah have lost 2.33 per cent and 1.5 per cent in the same period against the dollar.
While Brazilian Real has lost 3.99 per cent in the same period, Russian Ruble has weakened by 3.25 per cent. In the same period, only the Turkish New Lira has lost more than the Rupee as it declined 4.36 per cent against the dollar. The Rupee has been one of the weakest emerging market currencies over the last three weeks as has lost 4.2 per cent since March 22 against the dollar. Data shows the Rupee has been one of the biggest losers over the last three weeks as concerns are growing over rising Covid cases and its impact on economic activity across the country. On Tuesday, it lost 43 paisa to a dollar, hitting a nine-month low. From trading at a level of 72.38 to USD on March 22, the Rupee slipped to levels of 75.42 on Tuesday (afternoon trading hours) thereby witnessing a decline of 4.2 per cent in a matter of three weeks.
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