Indian Rupee is Stable against the US Dollar
Indian Rupee Remains Stable Against The US Dollar
On Tuesday, the Indian rupee remained stable against the United States dollar. The Indian currency traded at 104.4 and 104.6 in the inter-bank market. This record was the same as Monday’s close.
In the recent months, there have been regular fluctuations of the currency market with sharp rise and falls on some occasions. However, the Indian rupee has not been affected much by this trend. It has stood firm after undergoing extensive volatility as a result of alleged election rigging. In the wake of this political tension, the currency weakened from around 98 to 103 to a dollar.
Last year, the Indian rupee remained at 98 Rupee to a dollar for months. It came under pressure when the government decided to make heavy debt repayments to the International Monetary Fund and other creditors. The total amount paid to the creditors ate into the CB’S foreign currency reserves.
However, in 2013-2014, the central bank’s currency reserves grew tremendously to more than 50 percent thanks to the money injected by the International Monetary Fund, assistance from external bodies and increasing remittances from Indian expatriates living and working overseas.
The deputy governor of the Reserve Bank of India Urjit Patel said, “The central bank’s currency reserves grew tremendously in 2013-2014 to more than 50 percent. This was due to the money injected by IMF, external Assistance, and increasing remittances.”
Rate of exchange drops drastically as three suspects caught with old currency notes in India
Mumbai police’s crime branch unit have detailed three suspects who were found with 63 lakhs of old currency notes. The detained suspects include tattoo artist, Amit Jahangir and Gaurishankar Mistry and jewelers Rajesh Jain.
The suspects were rounded up based on the tip-off from the public. The police picked them up from Mumbai Central area during an intensive operation which involved several policemen. During a search operation, the police found 63.2 lakh of old currency notes in 1000 rupee notes.
The most interesting part of this case was the commission rate at which these three suspects were exchanging the old currency notes. After several hours of interrogation, they told the police that they were exchanging it at 1% of the total amount.
It has to be noted that after the Indian PM Narendra Modi's demonetisation policy, the country’s currency rates were high up to 60%.
"We are shocked at the rate at which the current currency rates have dropped drastically. Last year, from 8th November to 31st December, the rates were as high as 60 percent. At the moment the rate is 1%. This is due to the huge amount of new currency notes circulating in the market. It is very shocking that there is no shortage of new currency notes. In fact, the currency is in excess,” a senior crime branch officer told India Today.
According to RBI policy, old currency notes can be exchanged by NRIs till 31st March.
Meanwhile, the special crime branch unit has informed the Department of Income Tax who are also carrying out parallel investigations regarding this matter.