Lead Story

Flat On Its Back

The rupee’s resilience has again been blown away by its oldest nemesis: rising crude and foreign outflows. The outlook for the next year is not pleasant either

Getty images

It’s ironical that a just a day before the country celebrated its 72nd Independence Day, the rupee crossed the 70 mark against the greenback. On June 28, the rupee breached the 69 per dollar mark for the first time ever, and hit a new low at 70.40 on August 16. When the rupee was first devalued in 1966 and pegged to the American currency, it equaled 7.50 rupees. While the INR’s “once-upon-a-time story” has often gone viral on social media, the fact is that the rupee has been depreciating at a CAGR of 4.46% since it was first devalued.