Finance Minister Arun Jaitley told Parliament on Tuesday that the real crisis for the rupee started back in May 2013 amid talks of the quantitative easing by the US Federal Reserve.
The Indian rupee plunged nearly 29 per cent in a matter of just four months back in 2013, a period described by most analysts as the worst for the Indian currency.
The rupee plunged from 53.67 recorded in May 2013 to a record low of 69.13 (intraday) against the US dollar on 28 August, which also marked its largest single day fall in 18 years.
Not just the rupee, the Indian stock markets also took a hit with the S&P BSE Sensex recording a fall of nearly 4 per cent during the same period, putting further pressure on the rupee.
The Indian rupee plunged nearly 29 per cent in a matter of just four months back in 2013, a period described by most analysts as the worst for the Indian currency.
The rupee plunged from 53.67 recorded in May 2013 to a record low of 69.13 (intraday) against the US dollar on 28 August, which also marked its largest single day fall in 18 years.
Not just the rupee, the Indian stock markets also took a hit with the S&P BSE Sensex recording a fall of nearly 4 per cent during the same period, putting further pressure on the rupee.
The US Federal Reserve, which was putting in about $85 billion into the market, announced their intention to ease this situation, which resulted in a sharp depreciation in the rupee, explained Jaitley. As a result of which, foreign currency in terms of dollars was being pulled out from various other economies, which created this particular balance, he added.
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