‘Vulnerable’ Rupee Will Continue to Fall Irrespective of War, May Rise Above 95 Against Dollar: Japanese Bank MUFG |
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New Delhi: What explains the Indian rupees woes? As it routinely closes at “historic lows”, most recently at 94.85 to the US dollar on March 27, this is a question that’s making not just national but international headlines. The government’s claim that the rupee is falling only with respect to the dollar, and not other currencies, does not stand up to scrutiny.
The rupee has been termed Asia’s “worst performing currency”, doing markedly worse than the yuan, the rupiah and other peer currencies.
Over the last year, Union finance minister Nirmala Sitharaman has sought to explain away the fast-paced fall of the value of the Indian rupee vis-a-vis the US dollar many times – from saying that global uncertainty is at play to making statements like, “The rupee will find its own level.” This year’s economic survey added that while the rupee is “punching below its weight”, this does not reflect the health of the Indian economy or “India’s stellar economic fundamentals” .
A new report by a large Japanese bank, MUFG, however, says that the falling rupee reflects something more worrying, from the Indian perspective – and that even if the most........