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 not even said a word. Yes!! You read it right the value of rupee is coming back on track. It is getting stronger and has astonished everyone by posing the biggest single day gain in the past 5 years.
On Tuesday, the Indian rupee surged by a whopping 112 paisa to settle at 70.44 against U.S. dollar owing to softening crude oil prices and decreasing concerns over India’s current account deficit expansion.
The domestic current also witnessed a major boost due to sustained selling of the American currency by exporters and banks as well as the greenback’s weakness against its key rivals globally ahead of the U.S. Fed policy decision on December.
At the Interbank Foreign Exchange (Forex) market, the rupee opened on a firm note at 71.34 and hit a high of 70.44- a substantial gain in the last five years since September 19, 2013, when it had surged by 161 paise against the U.S. dollar.
Few days back also the domestic currency created record of surging past 70/$ mark for the first time in three months. 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 three months back
This all is because of the Modi Government’s efforts for reviving the domestic currency. The Government is trying to make all the major oil producers countries agree to trade in local currencies rather than dollar which will strengthen exchange rates of their currencies in comparison to dollar. Till now India has signed currency swap agreements with Japan, Russia, UAE and Iran to trade in local currency. It is eyeing 23 countries including China to deal in local currencies to reduce dollar impact on Forex Reserves.
Along with that, the Government is in talks for barter exchange trade with many oil producing countries to save foreign exchange. Under the barter exchange system India will export particular item in exchange of product being imported from that nation. PM Modi Government is also considering options of increased exports and reduce imports through hike in tariffs to stabilize rupee
Moreover foreign portfolio investments and foreign institutional investments have also increased in recent months owing to Modi Government efforts and it will also lead to rise in the value of rupee since there is more demand for the home currency from foreign investors after entering the country.
The market is showing continuous improvement now but the Congress and Opposition are now busy on bullying the PM Modi Government on other things and are blind to see this
Source : Hindustan Times