The Rupee is again on a freefall and hit a record low of 68.75 against the Dollar on Wednesday despite RBI’s and Finance Minister P Chidambaram’s stringent attempts to diminish fears that the Food Security Bill may widen the fiscal deficit this year.
Last week, the Rupee jumped back after hitting low at 65, sending positive signals to the markets, however, it returned to the bearish territory on Thursday.
India, however, is not the only country whose currency is weakening. Other emerging economies which are reeling under economic crisis include Indonesia, Brazil, Thailand, Malaysia, Russia, Turkey and South Africa because of fears that US may end its quantitative easing by year-end.
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(With inputs from agencies)