India’s plummeting rupee raises concern
Economic problems and eurozone crisis push country’s currency to all-time low against US dollar.
Published On 19 May 2012
The Indian rupee, losing its value since last year, has now hit an all-time low against the US dollar.
The currency has lost more than 20 per cent since 2011, contributing to a slow down of India’s GDP growth and a widening of its fiscal deficit.
Critics blame the government’s indecision in introducing financial reforms as the main cause for the rupee’s current crisis.
A greatly devalued rupee means a ballooning import bill, as India buys about 80 per cent of its oil from abroad.
India’s vulnerability to the eurozone crisis is also pushing the rupee downward.
Al Jazeera’s Prerna Suri reports from New Delhi.