New Delhi, Jan 13: The Congress party has criticized Prime Minister Narendra Modi regarding the decline in the value of the rupee, stating that as the devaluation continues, it is evident he is “hoist with his own petard”.
On Monday, the rupee experienced its most significant drop in almost two years, falling by 55 paise to reach an all-time low of 86.59 against the US dollar during mid-session, primarily due to a strengthening US dollar and rising crude oil prices.
“When Mr. Narendra Modi assumed office as PM, he was nearing 64, and the rupee was at 58.58 to the dollar. He spoke at length about strengthening the rupee and mockingly associated its decline with his predecessor’s age,” stated Congress general secretary Jairam Ramesh in a post on X.
“Now, as Mr. Modi approaches 75 later this year, the rupee has dropped well beyond 86 to the dollar. With this ongoing decline, it is clear that Mr. Modi is indeed hoist with his own petard!” During the interbank foreign exchange trading, the rupee opened at 86.12 and fell to its historic lowest level of 86.59 against the dollar mid-session, marking a 55 paise drop from its last close.
However, the local currency did recover some losses and was trading at 86.50, down by 46 paise against the dollar.
This 55 paise decline, or 0.65 percent in just one day, was the steepest since February 6, 2023, when the rupee fell by 68 paise.
In the past two weeks, the Indian currency has seen its deepest plunge, dropping over Re 1 from the closing level of 85.52 on December 30.
The Congress has been vocal against the government’s economic management, highlighting issues such as dwindling investments and the rupee’s depreciation.
“While the non-biological PM is rediscovering his humanity, foreign investors have exited our stock markets, pulling out $2 billion in just six days, which underscores the impact of our weak macroeconomic fundamentals—stagnant wages, declining private investment, and slowing consumption growth,” Ramesh remarked in a prior post on X.
He added that this trend reflects a lack of investor confidence in India’s financial markets, particularly following allegations regarding the SEBI chairperson’s conflicts of interest and India’s decreasing attractiveness for foreign investment compared to nations like Vietnam and Malaysia.
Ramesh concluded by stating that the rupee keeps reaching new lows against the dollar, intensifying currency risks. (Agencies)
