Rupee 95.40 per US$, V Anantha Nageswaran blames global factors
The Indian rupee just hit 95.40 per US dollar, close to its lowest ever, but don't blame India's economy, Chief Economic Adviser V Anantha Nageswaran says it's all about what's happening globally.
With rising oil prices and Gulf tensions, investors are pouring money into the US (thanks to an A.I. investment boom), leaving emerging markets like India with less inflow.
Oil imports, dollar demand weaken rupee
Even though India has solid economic growth, inflation management, and stable finances, the rupee has dropped more than 13% in two years, mainly because of higher oil import costs and steady demand for dollars.
Nageswaran points out that the rupee isn't reflecting how strong the Indian economy actually is right now; it's more about big shifts in global capital and market trends.