Kharge slams govt as rupee hits record low, says ‘Reality of economy exposed’

Congress president Mallikarjun Kharge on Thursday criticised the Narendra Modi government over the rupee breaching the 90-per-dollar mark, calling the sharp depreciation a mirror of the country’s “real economic situation”. The Indian currency slumped to a fresh all-time low of 90.43 against the US dollar in early trade, slipping 28 paise from its previous close.

In a post on X, Kharge recalled Narendra Modi’s own comments from before 2014, when the then Gujarat chief minister had questioned the UPA government over the weakening currency. “Before 2014, Modi ji said, ‘What is the reason that India’s rupee is getting patla (losing its value)? You will have to answer this. The country is demanding an answer.’ Today, we are asking Modi ji the same question,” he wrote. Kharge added that “no matter how much the government beats the drum, the falling rupee shows the country’s real economic condition”.

Speaking to reporters in Parliament, the Congress president said the continuous decline of the rupee contradicted the government’s claims of strong development and economic growth. “When the value of the rupee declines, we get to know what the real economic situation is,” he said.

Forex traders attributed the sharp fall to restrained central bank intervention ahead of the Reserve Bank of India’s Monetary Policy Committee (MPC) announcement, along with strong month-end dollar demand from importers. The rupee opened at 90.36 at the interbank foreign exchange market before slipping further to its record low.

Analysts say the upcoming MPC decision could influence the currency’s trajectory. A rate hike or a cautious stance could offer some support to the rupee by maintaining the yield advantage for foreign investors. However, any dovish signal or surprise rate cut may intensify the pressure by narrowing the interest-rate differential with the US dollar, potentially prompting further capital outflows.

On Wednesday, the rupee had breached the 90-per-dollar level for the first time, settling at a then record low of 90.15. The continued slide has raised concerns over rising import costs, inflationary pressures and broader economic stability.