- Wednesday, May 08, 2024
By: Shubham Ghosh
THE Indian rupee has seen a steep fall and in June, the currency’s hitting all-time lows against the US dollar has raised eyebrows.
On Wednesday (29), the rupee breached 79 per dollar for the first time, breaching a psychological line, but regained some ground by climbing back 13 paise to 78.9 in early trade on the final day of the month.
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When Indian finance minister Nirmala Sitharaman was asked why the rupee was seeing such a steady decline vis-à-vis the greenback, she said the Indian currency was still better placed than many other global currencies, Investing.com reported.
“We are relatively better placed. We are not a closed economy. We are part of the globalised world. So, we will be impacted (by global developments),” she was quoted as saying.
The Indian rupee has been tumbling amid high prices of global crude oil led by geopolitical tensions caused by the Russia-Ukraine war; mounting inflationary pressures; global central banks starting aggressive monetary policies to tame inflation besides the relentless offloading of Indian shares by foreign investors, the report added.
Last week, Michael D Patra, the deputy governor of India’s central bank – the Reserve Bank of India – said the bank will avoid ‘jerky movements’ of the rupee while stressing that it witnessed the least depreciation in recent times.
