Post by : Badri Ariffin

The rupee’s sharp fall against the US dollar on Monday reignited a political flashpoint, with the Congress citing Prime Minister Narendra Modi’s own decade-old remarks on currency depreciation. The domestic unit opened at 89.46 per dollar before recovering slightly to 89.17, but the movement came just days after it recorded its steepest drop in more than three years.

On Friday, the rupee had plunged 98 paise to close at a lifetime low of 89.66 amid heavy demand for the US currency and widespread selling pressure in both domestic and global markets. Trade-related uncertainties and risk-off sentiment further weighed on the valuation, bringing the currency uncomfortably close to the 90 mark.

As markets opened this week, Congress general secretary Jairam Ramesh took a swipe at the Centre. Posting on X, he said the rupee was in “free fall” and “about to breach the 90 rupees to the USD low”. He also resurfaced a 2013 video of Modi, then Gujarat chief minister, in which he had mocked the UPA government as the rupee weakened at the time. In that clip, Modi is heard saying that it seemed like there was a “competition” between the falling rupee and the government’s “dignity”.

The latest currency movement has added pressure to an already volatile financial landscape, with the rupee’s one-day fall of 98 paise becoming the steepest since February 24, 2022, when it had declined by 99 paise. Market watchers attribute the ongoing slide primarily to global uncertainties and increased dollar demand from importers, even as domestic equity indices continue to witness selling by investors.

The political exchange, meanwhile, has added another layer of intensity to the broader economic conversation, placing the rupee’s trajectory firmly in the national spotlight as markets brace for further fluctuations.

#Global News #Business News