The Rupee has recently gone up 26 paise against the US dollar to settle at a point of 75.94. The financial minister of India says they are working on a relief package due to the coronavirus, so they expect the value of the Rupee to make its way back to where it should be. The value is being monitored on the stock market three times a day to ensure that it doesn't get to out of hand. The outbreak of the virus has impacted the domestic economy as well as the global economy, which will continue to impact the value of the Rupee. There has been a reported 500 cases in India and is likely to continue to rise. The Rupee is expected to have a value of 80 compared to the US dollar in 2021, which is up from its current value of 77.
With the continued increase in value of the Rupee it will be interesting to see how investors will switch from the Rupee to a more stable currency like the U.S. dollar. I would guess that foreign investment will decline until the Rupee can start to recover which will probably be a long and difficult battle.
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