The Indian rupee’s recent gains could be short-lived as pressure grows on Prime Minister Narendra Modi’s administration to announce a nationwide lockdown to curb a deadly wave of coronavirus infections. The prospect of stricter curbs is reviving memories of last year when similar measures dragged India’s economy into its worst contraction in four decades. Goh forecasts the rupee to fall to 76 per dollar in the second quarter but expects further declines to be limited by a reduction in imports. India’s capital extended its lockdown for another week while the nation reported 403,736 new virus cases on Sunday, and more than 4,000 Covid-19 deaths for a second day. Modi’s political allies, top business leaders and even U.S. President Joe Biden’s chief medical adviser have said lockdowns could be the only way to stem the world’s worst virus outbreak.

Source: Mint May 10, 2021 01:41 UTC