'Competition underway between Centre and Rupee': Rahul quotes PM Modi's own words to hit out at govt

The increasing global crude oil prices and inflation concern turned slippery for the Indian rupee as it went down against the US dollar on Tuesday.
​Congress leader Rahul Gandhi

Congress leader Rahul Gandhi

Photo : ANI
New Delhi: Congress leader Rahul Gandhi today lashed out at Prime Minister Narendra Modi and the BJP-led Central government as the Indian Rupee fell to a record low of 78.85 (provisional) against the US dollar. The increasing global crude oil prices and inflation concern had turned slippery for the Indian rupee today, even as foreign investors continued to sell their equity holdings on the bourses.
"Competition is going on between the government and the rupee, whose face is falling fast, who will go ahead," Gandhi said, quoting an earlier remark made by Modi when he had been the Chief Minister of Gujarat. At the time the remark had been aimed at the Congress-led UPA administration.
"To arrest the deteriorating condition of the country's economy...instead of speech...attention has to be paid to governance. But this is not just about the prime minister," Gandhi opined in a tweet on Tuesday evening.
The rupee has dipped to record lows recently, weighed down by persistent foreign capital outflows and a surge in crude oil prices. At the interbank foreign exchange market, the rupee opened lower at 78.53 against the greenback and finally settled at 78.85, down 48 paise over its previous close. During the session, the rupee touched an all-time low of 78.8550 against the American currency.
International crude oil prices have been above the psychologically crucial $100 per barrel mark since February, and inflation is at a multi-decadal high in advanced countries. Inflation in India, too, is above the permissible tolerance band at the moment. "Going forward, we expect the rupee spot to depreciate towards 80/81 levels by the year-end as twin deficits (fiscal deficit and current account deficit) add to pressure on the emerging market currency," said Jigar Trivedi - Research Analyst- Commodities and Currencies Fundamental, Anand Rathi Shares and Stock Brokers.
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