MUMBAI: India’s rupee weakened to its lowest since 2018 and stocks tumbled after the central bank seized control of beleaguered Yes Bank Ltd, intensifying the risk-off mood fueled by the spread of coronavirus cases in India.The rupee fell as much as 1.1% before trimming losses on what traders said was suspected central bank intervention.
The Reserve Bank of India put strict limits on the lender’s operations while a rescue plan is devised. Primary schools in New Delhi have been closed until March 31 to prevent the spread of the virus with the number of confirmed patients across the country jumping to 31 this week.The lender’s shares plunged as much as 85% before paring some losses after Governor Shaktikanta Das said that resolution for Yes Bank would be swift.“The panic will subside immediately if they act fast,” Nilesh Shah, chief executive officer and managing director of Kotak Mahindra Asset Management Co, said by phone.