The rupee has depreciated sharply by 4.7% by end March, with the speculative behaviour in the market given the spread of the COVID-19 outbreak, the Central Bank revealed yesterday.

The sharp dip was after the rupee remaining broadly stable in the month of January as well as until the first week of March, the bank added. Reflecting cross-currency movements, the rupee depreciated against the US dollar, the euro and the Japanese yen while appreciating against the pound sterling, the Canadian dollar, the Australian dollar and the Indian rupee during the year up to 30 March 2020.

The Central Bank also said in January a net inflow of foreign investment amounting to $ 19 million was recorded in the rupee-denominated Government securities market. Further, net outflows on account of long-term loans to the Government amounted to $ 85 million.

Foreign investment in the CSE, including primary and secondary market transactions, recorded a net outflow of $ 16 million in January.

Gross official reserves stood at $ 7.5 billion at end January 2020, equivalent to 4.5 months of imports.

Meanwhile, total foreign assets consisting of gross official reserves and foreign assets of the banking sector amounted to $ 10.3 billion at end January 2020, equivalent to 6.2 months of imports.

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