RU­PEE SLIDES AGAIN

Business Today - - IMPACT SNIPPETS -

The ru­pee stum­bled again, hit­ting a low of 68.0883 against the U. S. dollar on May 21, 2018, the worst- ever slide since Fe­bru­ary 2017, ac­cord­ing to RBI data. It had ear­lier breached the 68 level on sev­eral oc­ca­sions. On Au­gust 28, 2013, its value fell to 68.3611 a dollar, but it had re­cov­ered im­me­di­ately. Next, it reached a new bot­tom of 68.7775 on Fe­bru­ary 26, 2016. There was an­other slide on Novem­ber 28, 2016 (right af­ter the de­mon­eti­sa­tion on Novem­ber 8), when it reached 68.7235. The key rea­sons be­hind the cur­rent slide are at­trib­uted to ris­ing oil prices and the ex­pected rise in cur­rent ac­count deficit due to that, in­ter­est rate hike by the Fed­eral Re­serve, ris­ing in­fla­tion and large gov­ern­ment bor­row­ings.

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