Congress Criticizes Government as Rupee Hits 95 Against Dollar
Congress MP Critiques Government's Economic Management
On Tuesday, Congress MP Randeep Singh Surjewala expressed strong criticism of the central government, highlighting that the Indian rupee has crossed the 95 mark against the US dollar, which he claims is tarnishing the Prime Minister's reputation alongside the currency's decline. Speaking to reporters in Bengaluru, Surjewala recalled former Prime Minister Manmohan Singh's criticism regarding the rupee's depreciation during Modi's tenure.
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Surjewala pointed out that when the dollar was valued at 54 rupees, then Gujarat Chief Minister Narendra Modi had remarked that the rupee's value was directly linked to the Prime Minister's standing. Now, under Modi's leadership, the rupee has plummeted to 95 against the dollar, adversely affecting exports and impacting industries and businesses. He questioned whether Modi's reputation is not also suffering as a result.
Karnataka's Deputy Chief Minister D.K. Shivakumar urged the central government to assess the situation and restore normalcy. He noted the rupee's decline and the dollar's rise, emphasizing the impact on the common man. Shivakumar stated that he is unaware of the central government's policies but insisted that they must take control of the situation and stabilize it. On Monday, the rupee reached an all-time low of 95.23, reflecting significant volatility in both domestic and foreign exchange markets.
This depreciation of the domestic currency is attributed to Brent crude prices remaining above $100 per barrel and continuous withdrawals by foreign portfolio investors (FPIs) from the Indian stock market. Market data indicates that FPIs sold shares worth ₹1,31,122 crore in March alone, putting considerable pressure on the rupee. Following the Reserve Bank of India's directive to limit the net open position in the domestic market to $100 million by April 10, the rupee showed some improvement, opening at 93.58. However, pressure soon mounted again, pushing the rupee back to the 95 level.