The USD/INR appreciated through the day after US waved the red flag and traded mostly within the 74..40 and 73.80 range. Markets are recovering from serious global equity sell offs and traders played cautious over the weekend.Financial markets around the globe have turned extremely risk averse due to the rapidly spreading coronavirus. Major central banks and governments across the globe are working to contain the economic damage caused by the rapid spread of coronavirus. The US Federal Reserve announced measures to infuse liquidity of $1.5 trln through new repo operations. Market participants also expect US Federal Reserve to cut rates by 100 basis points in its policy meeting next week. The US Fed has already cut federal fund target range by 50 basis points to 1.00-1.25% on Mar 3 in an off-policy move. Further, to ensure sufficient availability of dollars in the markets, the Reserve Bank of India also announced first-of-their-kind auctions of foreign exchange swaps. It will sell dollars for immediate delivery and purchase them for delivery after six months, the central bank said in a release. The central bank will undertake six-month dollar sell/buy swaps which will be conducted through auction in multiple tranches, the first of which will be worth $2 bln and is scheduled for Monday. The date of maturity of the upcoming swaps is Sep 18. Market participants also expect the Reserve Bank of India to follow the steps by other central banks across the globe and lower interest rates to boost sentiment in the financial markets. Market participants are of the view that the RBI may keep sharp depreciation in the rupee in check through its dollar-selling intervention in the spot as well as the derivatives market.