Indian rupee drops further after budget

Indian rupee drops further after budget

The Indian rupee plunged by 48 paise on Monday to Rs71.73 per dollar in the aftermath of the interim budget and ahead of the Reserve Bank of India’s policy review meet, signalling its proclivity to head further south with crucial parliamentary pools looming.

Forex traders said strengthening of the dollar against some currencies overseas weighed on the rupee. On Friday, as the interim budget was unveiled, the rupee settled 17 paise lower at 71.25 against the US dollar.

Economists warned Prime Minister Narendra Modi’s pre-election budget, which includes handouts for farmers and tax cuts for the lower middle class, is likely to weigh on whoever forms the next administration.

Pradeep Unni, head of strategic business development at Richcomm Global Services DMCC, said the rupee extended its slippage post the interim-budget.