PremiumFormer finance minister and veteran Congress leader P Chidambaram has shared a piece of advice for Prime Minister Narendra Modi as the Rupee continues to plunge against the US dollar.
Chidambaram said the government needs all the wisdom and experiences available in the country considering the situation of the economy and the fall of the rupee.
Chidambaram said a consistent depreciation of the rupee value will have consequences for inflation, current account deficit, and interest rates.
"At this moment, the Government needs all the wisdom and experience available in the country. I have suggested a group of eminent professionals who have the interest of the country at heart," Chidambaram tweeted late on Thursday evening.
Making his case further, he said in another tweet that his "advice" to prime minister Modi is that he should immediately call a closed-door meeting of C Rangarajan, Y V Reddy, Rakesh Mohan, Raghuram Rajan, and Montek Singh Ahluwalia, along with Union finance minister, governor of RBI, to consider the next steps that the government may take.
On Friday rupee was trading at 82.84 against a US dollar at 11:30 AM. Yesterday, the rupee fell to 83.06 in early trade today as the surge in Treasury yields and the dollar index fuelled a broader decline in Asian currencies and equity markets.
The rupee had hit a record low of 83.02 in the previous session.
the Indian rupee has been weakening over the past few weeks to hit fresh new all-time lows as the US dollar strengthened against major global currencies. On Wednesday, the rupee breached the 83 mark for the first time in its history.
So far this year, the rupee has depreciated around 11-12%.
The rising trade deficit, depleting forex reserves, strong US dollar index, and the latest monetary policy tightening by the US Federal Reserve are some of the major reasons that triggered the currency's depreciation.