Currency traders see no reason to panic due to coronavirus outbreak

If there is news about the possible containment of the virus, the rupee can strengthen rather sharply

While currency traders are shunning long term views, they don’t see any reason that the rupee will get into a freefall due to the coronavirus fear.  

“There is a huge risk aversion. The momentum of the risk aversion can be captured on a day to day basis,” said Abhishek Goenka, managing director of IFA Global.

Still, the rupee is not in a bad shape. Dealers don’t see the local currency depreciating much from the present level if the epidemic doesn’t turn into a pandemic. The immediate level could be 72.50 a dollar, which can be reached even on Monday, but 73 a