‘Enough forex reserves to meet volatile rupee’

Rupee,US dollar,Lira

Rupee,US dollar,Lira

The fall was triggered by financial crises in Turkey which lead to a strong demand for United States dollar.

Analysts said the falling rupee could lead to higher inflation as Indians pay more for imported goods and services.

Some currency experts are even predicting that the rupee would slide to 80 per dollar, or Rs21.8 per dirham in the coming months. Jaitley assured that the country's current exchange rate market is being monitored to address any unexpected situation.

Meanwhile, the BSE Sensex trimmed early losses to trade flat in late morning deals backed by gains on pharma, banking, auto and IT counters, even as the rupee fell to a fresh all-time low against the dollar triggered by economic crisis in Turkey.

However, the fall in the value of rupee is not sudden. The rupee which has lost over 8.5 per cent this year is one of the worst performing emerging market currencies. Trade deficit soared to a almost five-year high of $18 billion, data released by the commerce ministry on Tuesday showed. Since April 13, foreign exchange reserves have declined by 5.5 per cent or $23.4 billion. Because of all these, the Indian rupee reacted sharply.

It is to be noted that apart from the possible domino effect of dwindling Turkish lira the US Dollar is naturally strengthening as its economy is recovering. In fact, the dollar index has strengthened beyond 96 levels as it is considered a safe haven during financial crises.

Forex market was shut yesterday on account of Independence Day. Opposition politicians blamed the government's economic policies. However, the fact is that the rising value of the dollar has huge implications on the microeconomics of everyday India. Currently, India imports around 80 per cent of its crude requirement.

Danny Cipriani arrested after night club incident in Jersey, charged with assault
Cipriani moved from Wasps to Gloucester past year and had recently managed to get himself back into the English global picture. Gloucester are now in Jersey as part of a pre-season tour, with Cipriani joining the team over the summer from Wasps.

India plans to raise 6.06 trillion rupees ($86.71 billion) in the current fiscal year ending in March 2019, to fund the fiscal deficit.

The current low is also a bad news for students aspiring to study overseas, as lower rupee value will lead to higher education costs. He said the dip resulted from "external factors".

"The Indian rupee just gave the Supreme Leader a vote of no confidence, crashing to a historic low", Rahul Gandhi, president of the main opposition Congress party, said in a tweet referring to his rival Modi.

On the other hand, the government is refusing to see the red flags.

The developments in the currency market were being monitored closely to address any situation that might arise in the context of the unsettled global environment, he added.

However, India's macro fundamentals remained resilient and strong, Jaitley added.

Recommended News

  • Coca-Cola takes stake in Kobe Bryant-backed sports drink

    Coca-Cola takes stake in Kobe Bryant-backed sports drink

    Monster Beverage and Red Bull follow close behind, with Coke trailing in fourth place with a 7 per cent share. Neither Keurig Dr Pepper nor BodyArmor responded to Reuters' requests for comment.
    Trump axes ZTE restrictions on China before signing defense bill

    Trump axes ZTE restrictions on China before signing defense bill

    The act authorizes $717 billion in military spending for fiscal year 2019, which lasts from Oct 1 to Sept 30, 2019. The House passed the bill in late July before sending it to the Senate, which passed it earlier in August.
    Saif Ali Khan rings in his 47th birthday with family

    Saif Ali Khan rings in his 47th birthday with family

    On the work front, Saif Ali Khan was recently seen in Netflix's hit series Sacred Games while Kaalakaandi was his last film. While birthday boy Saif stood out with a flowing beard and a red bandana, it was Kareena who was photographer's favourite.
  • NASA's Parker Solar Probe lifts off successfully

    NASA's Parker Solar Probe lifts off successfully

    Altogether, the Parker probe will make 24 close approaches to our star during the seven-year, $1.5 billion journey. It will face brutal heat and radiation conditions to provide researchers with the closest observations of a star.
    Organ donor opt-out system 'unlikely' to increase donations

    Organ donor opt-out system 'unlikely' to increase donations

    Commenting on the new study, an NHS Blood and Transplant spokesman said: "This is a decision for the Government and Parliament". What's the argument for the opt-out system? Even under the existing opt-in system, many relatives have vetoed organ donation.
    Warnings over Genoa bridge collapse made since 2012

    Warnings over Genoa bridge collapse made since 2012

    But there had been warnings for years that the Morandi Bridge was an accident waiting to happen. He said the bridge was an "engineering failure" an an interview with broadcaster Primocanale.
  • Nicki Minaj accused of stabbing ex-boyfriend Safaree Samuels

    Nicki Minaj accused of stabbing ex-boyfriend Safaree Samuels

    When things like that start happening more than once it's time to leave, " Safaree tweeted in a message that has since gone viral. Minaj responded on Twitter, and accused Samuels of lying, though didn't specifically address the domestic violence allegation.
    Tencent shares slide after Monster Hunter

    Tencent shares slide after Monster Hunter

    No guarantee on the continued operation of the game has been promised and Tencent is offering refunds to affected customers. However, it has yet to receive a licence that would allow it to monetise the updated game.
    Alonso will not compete in F1 next year

    Alonso will not compete in F1 next year

    November will see the Spaniard conclude his 17 year F1 career after joining the sport in 2001 racing for Italian team Minardi. Earlier this year, Alonso won the 24 hours of Le Mans on debut with Toyota.
  • Justin McMillan to transfer from LSU

    Justin McMillan to transfer from LSU

    Per usual media availability, players nor coach Ed Orgeron were available to speak after practice. McMillan, who graduated earlier this month, will be eligible to play immediately wherever he goes.
    Alleged Dealer In Demi Lovato Overdose Reportedly Has An Arrest Record

    Alleged Dealer In Demi Lovato Overdose Reportedly Has An Arrest Record

    The pills were reportedly laced with fentanyl , the same drug that killed Prince and 2016 and rapper Lil Peep in 2017. Just before she returned to rehab, she sent a message on Instagram to her fans to thank everybody for their support.
    PM raises eyebrows with

    PM raises eyebrows with "weight loss competition" proposal

    The replacement of traditional nutrient-rich food in favour of imported processed food has been blamed for the Pacific's weight problem.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.