India's plummeting rupee raises concern

Economic problems and eurozone crisis push country's currency to all-time low against US dollar.



    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.

    SOURCE: Al Jazeera


    YOU MIGHT ALSO LIKE

    'We scoured for days without sleeping, just clothes on our backs'

    'We scoured for days without sleeping, just clothes on our backs'

    The Philippines’ Typhoon Haiyan was the strongest storm ever to make landfall. Five years on, we revisit this story.

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    Unification: Saladin and the Fall of Jerusalem

    Unification: Saladin and the Fall of Jerusalem

    We explore how Salah Ed-Din unified the Muslim states and recaptured the holy city of Jerusalem from the crusaders.