Acche Din Rhetoric Falls Flat : Rupee Hits Lifetime Low Of 84.39 Against $US Dollar ; Retail Inflation Rises To 6.21%; Congress Reacts

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The rupee fell 1 while some reports say 2 paisa to a new lifetime low of 84.39 against the US dollar as persistent foreign fund outflows and a strengthening greenback against major crosses overseas dented investor sentiments. BJP’s slogan of Acche Din now faces the reaity test . Godi media of course presses the mute button

As per PTI, Forex traders said the rupee is likely to trade between 83.80 and 84.50 in the medium term, with the Reserve Bank of India likely limiting any significant downside, aided by its robust foreign exchange reserves.

At the interbank foreign exchange, the rupee opened at 84.39 against the US dollar. During the session, the local currency touched a high of 84.38 and a low of 84.41. It finally settled at 84.39, a decline of just 1 paisa against the US currency, registering the loss for the fifth straight session.

If That was not all, Retail inflation rose to 6.21 per cent in October from 5.49 per cent in the preceding month mainly due to higher food prices, breaching the Reserve Bank of India’s (RBI’s) upper tolerance level, according to official data released on Tuesday.

The consumer price index-based inflation was 4.87 per cent in October 2023. The National Statistics Office data showed that inflation in the food basket rose to 10.87 per cent in October from 9.24 per cent in September and 6.61 per cent in the year-ago month.

The RBI, which kept the key short-term lending rate unchanged earlier this month, has been tasked by the government to ensure inflation remains at 4 per cent with a margin of 2 per cent on either side.

Senior Congress leader and General Secretary General Secretary in-charge Communications Jairam Ramesh, Tweeted on X and took a dig at the Modi government