updated: Apr 07 2021, 20:06 ist
After logging its biggest single-day fall in nearly two years on Wednesday, the Indian rupee is expected to depreciate further as Reserve Bank's plan to purchase Rs 1 lakh crore-worth government bonds in the current quarter spooked sentiments.
Analysts said that Wednesday's loss -- wherein the rupee tumbled 105 paise to end the day at 74.47 against the US dollar -- has turned the rupee into Asia's worst performing currency so far this month.
Going forward, the domestic currency is expected to lose further ground and depreciate, they opined.
Some analysts said Reserve Bank's plan to buy government bonds worth Rs 1 lakh crore from the secondary market during the three months ending June 2021 is considered as a quantitative easing. The purchase of bonds under the government securities acquisition programme or G-SAP could go up to Rs 3 lakh crore in the current fiscal.