Rupee gains under siege as coronavirus health crisis fuels lockdown fears

Prospect of stricter curbs is threatening to weaken the currency, which is among Asia's top three performers this month

The Indian rupee’s recent gains could be short-lived as pressure grows on Prime Minister Narendra Modi’s administration to announce a nationwide lockdown to curb a deadly wave of coronavirus infections.
 

The prospect of stricter curbs is reviving memories of last year when similar measures dragged India’s economy into its worst contraction in four decades. It’s also threatening to weaken the rupee, which is among Asia’s top three performers this month, thanks to heavy foreign inflows for initial public offerings, a dovish Federal Reserve and a glut of dollars at state-run banks.

“The recovery in the rupee in recent weeks reflects