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Rupee Depreciation
Why is it in the news ?
- The Indian rupee hits an over eight-month low of 71.81, against the US dollar.
- A combination of global and domestic factors pulled the rupee down 26 paise against the dollar.
More in the news
Possible cause of fall in Rupee:
- The pressure on domestic equities, with the benchmark indices falling 1.6%.
- Foreign investors pulled out Rs 902.99 crore from Indian equities on Thursday, as per exchange data.
- Dismal growth in direct tax collection in the current fiscal, which further reflected the economic slowdown, also weighed on the rupee.
- Direct tax collection growth was below 5% till mid-August, which makes achieving the 17% target difficult.
- Also, there are uncertainties about a fiscal stimulus which the market was anticipating as the Chief Economic Adviser sounded caution over such a step.
Source
The Hindu.