Thrashing everyone’s aspiration, again and again, Value of the rupee is still falling with the flow and this time to a record low level of 73.77 against Dollar on Thursday. Thus, government and RBI have taken some immediate steps to further control the hike in the rupee value.
Value of rupee falls to about 44 paise in the morning due to hike in the international oil prices thus leading a fear of maintaining Current Account Deficit (CAD) and Capital Outflows in the coming days.
Talking about the reason of the record hike in the value of rupee, Managing Partner and Chief Investment officer of NDTV, Mohit Ralhan blamed the rise in the global oil prices and hike in the interest by the Federal Reserve.
He said, “The adverse situation for rupee is continuing with the consistent rise in crude oil prices, hike in the interest rate by Federal Reserve, sustained tensions in global trade and the widening current account deficit”.
To deal with the value of rupee and oil prices, RBI has directed the state oil marketing firms to raise $10 billion from overseas loans on Wednesday. The largest impact would be done when RBI will present its monetary policy tomorrow as the stocks and bonds in the market is weakening as an effect of the fall in the value of rupee.
According to the sources, the central bank would also flow Rs 36,000 into the money market within this month and central government would protect the companies against dollars effect by raising funds from the overseas market.
The value of rupee has dropped to 13% as compared to the dollar since the beginning of this year and oil prices to four years high.
The stock market prices for BSE Sensex stands at 35,437.98 to 1.49% lower while Nifty is at 10,702.50 to 1.43% down at the early morning.