Modi Makes History, India In Trouble: For The First Time In 71 Years, Rupee Falls To 71
At the Forex market, INR opened lower at 70.95 a dollar and slipped further to hit its lifetime low.
The rupee slumped to a fresh record low of 71 against the dollar for the first time ever by falling 26 paise on persistent demand for the US currency amid rising crude prices.
At the Interbank Foreign Exchange (Forex) market, the local currency opened lower at 70.95 a dollar and slipped further to hit its lifetime low of 71 from its previous close of 70.74.
Forex dealers said besides robust month-end demand for the American currency from oil importers, dollar’s strength against its rival currencies on expectations of rising interest rates amid lingering Sino-US trade tensions, weighed on the domestic currency.
Yesterday, the rupee slid further by 15 paise to close at a fresh lifetime low of 70.74 to the dollar due to strong demand for the greenback from oil importers and surging crude oil prices stoking inflation fears.
Growing fears about rising inflation in amid high global crude oil prices and consistent outflow of foreign funds from the domestic equity market also weighed on the domestic currency.
Benchmark Brent crude oil was at USD 78 a barrel in early Asian trade.
Meanwhile, the BSE Sensex fell 78.64 points, or 0.20 per cent, to 38,611.46 points in opening trade.
What is interesting to note is that ‘monetary policy experts’ like Chetan Bhagat and Sri Sri Ravi Shanker who expressed deep concerns back in 2013 when the rupee was valued at 60 per dollar during UPA regime, seemed to have restored to a vow of silence today.
Today, when India is on the brink of economic crisis under the BJP government, these ‘financial gurus’ are definitely short of expert advice.
Rupee at 60. It is mayhem. Close to an economic crisis. But well, the government is silent.
— Chetan Bhagat (@chetan_bhagat) June 20, 2013
It is refreshing to know that the rupee will get stronger at Rs.40/- per dollar if Modi comes to power http://t.co/OacZDXesGy
— Sri Sri Ravi Shankar (@SriSri) March 20, 2014
UPA Government and the Rupee seem to be in a competition with each other on who will tumble down more. http://t.co/Rl8RMMJ9kZ
— Narendra Modi (@narendramodi) July 24, 2013
In 2013, even Narendra Modi had said the fall in the value of rupee is not because of its ‘size’ but because of people sitting in Delhi who are busy in corruption.
Rupee is not losing strength because its size has changed.It is because those sitting in Delhi are busy in corruption: Modi ji
— narendramodi_in (@narendramodi_in) July 14, 2013
A Twitter user quoted Sushma Swaraj’s tweet in 2013, “The Rupee has lost its value. The Prime Minister has lost his grace.”
To Quote Sushma Swaraj: The Rupee has lost its value. The Prime Minister has lost his grace. pic.twitter.com/J3IQtOBZnQ
— Joy (@Joydas) May 7, 2015
With PTI inputs.