Rupee recovers after slumping to record low against dollar

The Indian rupee recovered after hitting record low against dollar on Friday. The domestic currency was trading 50 paise up from days' lows. Earlier in the day, the rupee opened 19 paise lower at 74.41 per dollar against previous close of 74.22 and plunged further to cross October 11, 2018 level of 74.48, weighed down by worries over the coronavirus pandemic.

A sense of anxiety among investors has developed as they see the global economy is plunging into a deep crisis due to coronavirus pandemic, according to analysts.

Amid the heavy rush for the US dollar in forex markets, the Reserve Bank of India (RBI) on Thursday announced that it will undertake a six-month US Dollar sell/buy swaps to provide liquidity to the foreign exchange market. The first sell/buy swap auction involving $2 billion will be held on Monday and the swaps will be conducted through auctions in several tranches, the central bank announced.