USD/INR Price News: Indian rupee off three-week lows at 72.86, not out of the woods yet

The steady pace of India’s economic recovery appears to be affected by a sharp surge in coronavirus cases in February, all eight high-frequency indicators tracked by Bloomberg News showed on Tuesday.

Key takeaways

“The February reading reflects gains in the economy at a time when virus cases were on the wane. “
“However, the recent weeks have seen the trend reverse, raising the specter of localized lockdowns that could hit consumer mobility and demand in an economy where consumption makes up some 60% of gross domestic product.”

“Economists see a bumpy road ahead given that the western Indian state of Maharashtra, which contributes 14.5% to the country’s overall GDP, is among the worst hit and accounts for the majority of cases. The state, which includes Mumbai, has imposed a night curfew to tamp down cases that have been rising since mid-February.”

more to come ...