Currency market in India is shut for another day on India on account of Dr. B.R Ambedkar Jayanti. Yesterday, it was closed on account of Gudhipadwa.
Also, Indian equities and bullion are also shut for Dr. B.R Ambedkar Jayanti.
The Indian currency amid the second Covid 19 wave has tumbled past levels of 75 against the greenback, which is the unit's almost 10-month low. This is also as FPIs have been constantly from Indian markets. And there is a forecast that in the current the rupee shall continue to face headwinds and will dive to levels of 76 per US dollar
Speaking on the reason for rupee slide against the American greenback; Anindya Banerjee, Deputy Vice President Technical Research at Kotak Securities said, "The narrative is appearing quite dangerous for USD to INR. On one hand there is surge in daily COVID-19 cases and on the other there is talk of complete lockdown in Maharashtra. Add to that a strong US Dollar overseas and massive short positions in USD-INR forwards or futures due to carry trade. We have a risk of a massive short squeeze, unless RBI steps in."
Meanwhile, Indian equities on April 13, 2021 showed resilience owing to the approval for global vaccines against Covid 19. But again today on fresh curbs in Maharashtra, markets are likely to tumble and remain volatile.