Few days back the Congress party & Opposition was continually attacking PM Modi and his Government for the falling value of rupee. In an attempt to malign image of PM Modi the Congress stooped so low that they even trended about depreciation in value on various social media platforms.
But now when the rupee is strengthening and showing constant revival then the Congress & Opposition have hidden in their homes and have not even a word to say. Yes!! You read it right the value of rupee is coming back on track. It has surged past 70/$ mark for the first time in three months
The value of rupee strengthened over 50 paise to reach a sub-70 level in Thursday’s trade (29 November) as the dollar weakened against major world currencies
At the Interbank Foreign Exchange, the rupee opened on a higher note at 70.15 and then gathered further momentum and touched an intra-day high of 69.88, a level last seen on August 27. On the other side Dollar index, which compares the movement of dollar against a basket of six major world currencies, fell edged 0.09 per cent lower at 96.58
The fall in value of dollar and boost in value of rupee occurred after US Federal Reserve Chairman Jerome Powell comments that the central bank’s benchmark interest rate is likely to be near a neutral level.
Also robust foreign fund inflows contributed in strengthening the rupee. Foreign institutional investors have poured in Rs 9,080 crore into the Indian market this month compared to Rs 38,906 crore withdrawals in October leading to strengthening of the domestic currency. Inflow of funds in Indian market leads to a rise in the value of rupee since there is more demand for the home currency from foreign investors after entering the country.
Also easing crude prices helped in revival of value of rupee. India imports 81 per cent of its crude oil needs and is the third-largest importer of oil after US and China.Since payment of crude oil prices is done in dollars, a lower crude rate leads to lesser amount of rupee being converted to dollar, thereby weakening the US currency.Smart recovery in domestic equity market too contributed in strengthening the rupee
Even in the money market, Government bonds jumped on Wednesday sharply owing to a sustained decline in oil prices as well as buying support from the central bank. The sharp fall in crude prices will also ease concerns over India’s current as well as fiscal deficit along with strengthening the rupee
Rupee which has been among the worst performing Asian currency this year, has gained over 5 per cent so far this month. The domestic currency had strengthened 17 paise to 70.62 on Wednesday. It has appreciated by 6 percent from its all-time low of 74.48 per dollar tested in the month of October.
The Congress and Opposition very well know that value of rupee depends on so many factors but still they keep on attacking Modi Government and blaming them for the fall in value.
Source : Business Today