The rupee continued rapid free fall for the ninth straight day on Tuesday, when it lost value by 26 paise to end at a fresh 2-1/2 month low of 67.75 on sustained demand for the American currency.
According to a PTI report, consistent unwinding by foreign investors on worries regarding the controversial tax issues as well as renewed possibility of the Federal Reserve raising US interest rates predominantly kept home currency under intense pressure.
Month-end dollar demand from oil companies along with aggressive hedging strategy adopted by importers in the wake of currency volatility also weighed on the rupee trade.
Weak rupee has been a major debating point among political parties in India as they tried to link it with India’s lack of economic growth.
Not so long ago, the BJP had thrown its weight behind highlighting the incompetency of Manmohan Singh, then UPA’s prime minister, whenever the Indian currency lost its value against the dollar. The party even made it a huge election issue.
Even the party’s sympathisers such as writer Chetan Bhagat and Sri Sri Ravi Shankar mocked Manmohan Singh and appeared confident that rupee will gain considerable strength as soon as Narendra Modi assumed power.