The woes of the Indian rupee continue

The woes of the Indian rupee continue

 

In what has been a steady and consistent slump since the last few weeks, the Indian rupee made yet another record decline when it closed at an all-time low of 74 against the US dollar late afternoon today. Meanwhile, the rupee was trading at 20.17 against the UAE dirham at 2.15 pm after the Reserve Bank of India (RBI) unswervingly preserved its key benchmark lending rates.

The slump of the rupee came in the aftermath of the announcement made by RBI. This decline is the lowest ever recorded against the American currency. The day had started with the rupee trading at 73.64 from its previous low of 73.58. Though many believed that the RBI would step in with a rate hike to help the rupee recover, the move did not manifest. The RBI has declared in its policy statement that the key lending rates have been maintained in view of the tumultuous global economic situation.