It's not breaking - it's broken: Rahul Gandhi on rupee's freefall

WION Web Team New Delhi, Delhi, India Oct 04, 2018, 01.04 PM(IST)

File photo of Congress President Rahul Gandhi. Photograph:( Zee News Network )

Story highlights

The rupee hit a new low of 73.77 against the dollar on Thursday. 

Congress President Rahul Gandhi tweeted on Thursday that the rupee was "broken". 

The rupee hit a new low of 73.77 against the dollar on Thursday. 

The rupee has also been Asia's worst-performing currency this year, losing over 14% in value in 2018. 

"#Breaking: Rupee slips to 73.77. It's not breaking - it's Broken," Gandhi tweeted on Thursday. 

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There is a certain irony to Gandhi pointing out the rupee's current slide. Before the 2014 general elections, the then Gujarat chief minister Narendra Modi had often pointed out the same thing to the then prime minister Manmohan Singh. 

There are a number of reasons for the rupee's current freefall. 

The prices of crude have in general been rising — petrol in Mumbai is selling at over Rs 90 a litre; there have also been fears that crude oil prices could sometime soon touch $100 a barrel —  and the US has been putting pressure on countries to stop buying oil from Iran.

India gets a chunk of its oil from Iran. 

The rupee has also been rattled by the trade war started by Trump with China. 

And China's yuan has fallen in recent months, leading to a dollar flight from developing economies, all of which make the dollar dearer, and the rupee less so.