RUPEE SLIDES AGAIN
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.