The Indian currency slumped to a record low against the US Dollar in the opening trade on Thursday, as the rupee opened at 74.95, compared to 74.26 which it closed at on Wednesday.
The sharp decline in the Indian currency is due to sell-offs by foreign institutional investors (FII) amid India's falling equity markets, which is leading to downward pressure on the rupee.
Indian share markets also witnessed a steep fall in the opening trade on Thursday: the Bombay Stock Exchange's 30-share index, Sensex, was down 1,100 points during the opening trade. It continued its free-fall, crashing 1,800 points and is currently trading at 27,080. By contrast, a month ago, Sensex was trading at above 41,000 points.
The broader 50 share Nifty of the National Stock Exchange also crashed in the opening trade on Thursday and lost 400 points.
On Thursday, Indian Prime Minister Narendra Modi is scheduled to address the nation, when he is expected to talk about issues related to COVID-19 and the government’s efforts to tackle the situation.
India, with 130 confirmed cases across the country, has registered three coronavirus deaths so far.