Amid Rising Fuel Prices And Falling Rupee, PM Modi Likely To Review State of Economy
The Rupee’s performance also has a bearing on fuel prices, which have been rising to new highs for over 10 days now.
Against the rising prices of fuel a nationwide strike was also held on Monday which affected life in at least eight states, though it was largely lukewarm across the country.
Subhash Garg, the economic affairs secretary, wrote on social network Twitter that, “It (rupee fall) reflected overreaction of market operators. Government and RBI will do everything to ensure that rupee does not slide to unreasonable levels. Today’s correction seems to reflect that realisation.”
Analysts are of the opinion that at least some of the currency’s fall has to do with sentiment.
Also Read: Fuel prices hike leads to Bharat Bandh
As per reports from PTI, the meeting is likely to review macroeconomic indicators, government finances and implementation of flagship financial inclusion and other development schemes as well.
The finance ministry has till now ruled out any cut in central taxes on fuel because it needs the money for its developmental and social projects.
On Wednesday, the Rupee gained 0.7% over its Tuesday close to end the day at Rs 71.69 to the dollar.
This, though, came after it almost touched Rs 73 to the dollar (Rs 72.92) in morning trades. The revival happened after reports of the PM’s review that said measures to contain the spiralling price of fuel and the falling currency would be considered. On Wednesday, the BSE’s benchmark index Sensex closed 0.81% up at 37717.96.
Also Read: Fuel prices rise to historic new. Read details.
