Indian Rupee Plummets All Time Low, Stocks Continue Fall

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Representational photo

Rahul Gandhi asked the government to work on improving the economy as he took a dig at Prime Minister Narendra Modi with words, “Focus on managing our economy, not media headlines.”

Team Clarion 

NEW DELHI — The value of India Rupee hit a new historical low of 77.56 against US dollar on Monday bringing further bad news for the economy that is already reeling under high inflation.

Even as the Reserve Bank had also raised interest rates last week the fall in rupee is causing  investors to withdraw money from India as stocks on Sensex and Nifty remained in losses for the fourth consecutive day.

On Monday, one Indian stock initially fell more than one per cent, but later there was some improvement in the situation. Banks, metals and oil and gas stocks saw the biggest decline. The value of the stock of a heavyweight company like Reliance fell by more than three per cent.

Stock exchange figures show that so far this year, foreign investors have pulled out a total of Rs 1,340 billion from Indian stocks.

With the ease of  COVID-19 restriction in China, investors are withdrawing capital from emerging markets such as India. Moreover, growing inflation is also discouraging the investors from India.

Retail inflation reached 6.95 per cent in March, the highest level in 17 months and is expected that in April (data pending) it may have  crossed 7%.

Experts say that rise in inflation may put pressure on the RBI to act again and the rupee may gain some strength but it is not going to go well for the local stocks.

Opposition leader Rahul Gandhi asked the government to work on improving the economy as he took a dig at Prime Minister Narendra Modi with words, “Focus on managing our economy, not media headlines”.

Congress also slammed the government over devaluation of rupee as the party tweeted an old clip of PM Modi when he was Gujarat Chief Minister showing him slamming the Manmohan Singh government for fall in the value of rupee.

Party leader Randeep Surjewala said, “Indian rupee is in ICU (intensive care unit) under PM Modi’s government… Life has become unbearable and expensive, whether it is petrol, diesel, cooking gas, CNG, PNG, or eatables. Everything has gone beyond the reach of common people”.

India’s foreign exchange treasury saw a decline for the eighth consecutive week. To stabilise the rupee, the Reserve Bank sold the foreign currency, but after this, in the week ending April 29, the foreign exchange treasury went below $ 600 billion.

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