‘Enough forex reserves to meet volatile rupee’

India spent $87.7 billion on importing 220.43 million tonne of crude oil in 2017-18. For 2018-19 the imports are pegged at almost 227 MT

India spent $87.7 billion on importing 220.43 million tonne of crude oil in 2017-18. For 2018-19 the imports are pegged at almost 227 MT

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.

'Mystery pooper' will get more than $100K from school district
In a freaky twist, Tramaglini has announced that he places to sue the Holmdel police department for taking photographs of him. He argues Tramaglini should not have been photographed at police headquarters because his charges are low-level offenses.

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.

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