Rupee under pressure

The rupee came under fresh pressure on Monday as the restart of the IMF loan programme was repeatedly delayed. It dropped 0.82%, or Rs2.32, to Rs284.03 against the US dollar in the interbank market.

The rupee had gained 0.40%, or Rs1.14, during the course of Thursday and Friday to reach Rs281.71 against the US dollar.

According to market rumours, the IMF programme’s reactivation is being postponed since friendly nations have not made any firm financial promises totaling $6-7 billion.

The government has very little time left before the general elections, so why would they make pledges to the leaving government, a financial analyst remarked.

Another expert noted that it might take a day, a month, or even a year to convince friendly states to make financial commitments.