Coronavirus Situation Comes Under The Global Spotlight

The rupee declined for the third week in four last week, its struggles are set to continue as the country remains in the grip of a surge in virus cases with the situation exacerbated by lack of key medical supplies including oxygen. There could be a reprieve today for INR bulls though, the greenback is on the back foot and forwards indicate a slightly higher open for INR.

• INR is expected to come under pressure this week though, Commerzbank says: "The dire situation on the Covid front will mean downside risks for INR and we see USD-INR at the upper end of the 74.50-76.00 range near term. Earlier this month, IMF upgraded India's growth outlook for the current fiscal year to 12.5% given the positive growth momentum and signs of economic re-opening. This is expected to be revised down and highlights the dramatic change in fortunes in just a short period. For RBI, its priority will shift away from inflation to growth and financial stability."
• Chief Minister Arvind Kejriwal on Sunday announced extension of the ongoing lockdown in Delhi for another week, the lockdown imposed on April 19 night will now continue until May 3. While new cases continue to rise, India's vaccination drive is gathering steam, the health ministry claims 14m doses have been administered in 99 days. India is also stepping up support programmes, saying will spend 260 billion rupees ($3.5 billion) to provide free food grain for two months to people covered under the state-run food programme.