Rupee among the world's most stable currencies: BJP counters Cong's claims

The BJP on Monday said the rupee is among the "most stable" currencies in the world and slammed the Congress for painting a "grim picture" of the fall in its value against the US dollar.

India's improved external position, reduced current-account deficit and strong foreign exchange reserves have made the rupee one of the most stable currencies globally, BJP's IT cell head Amit Malviya said in a post on X.

Over the last year, the rupee depreciated by a modest 3.68 per cent, outperforming major currencies like the Japanese Yen and Korean Won, which fell by 9 per cent to 12 per cent during the same period, even as the US Dollar Index surged by 9.8 per cent, Malviya said.

"So, the next time someone paints a grim picture of the Indian rupee, remind them of its disastrous performance under the UPA and the remarkable turnaround under the Modi government," he added.

The reaction of the Bharatiya Janata Party (BJP) leader came after the Congress took a swipe at Prime Minister Narendra Modi over the fall in the rupee's value and said as the fall continues, he has clearly been "hoist with his own petard".

The rupee logged its steepest fall in nearly two years, plunging 55 paise to hit a historic low of 86.59 against the US dollar during mid-session on Monday due to the strengthening of the American currency and surging crude oil prices.

Reacting sharply, Congress general secretary Jairam Ramesh said in a post on X: "When Mr Narendra Modi took over as PM he was about to turn 64 and the rupee was at 58.58 to the dollar. He waxed eloquent on making the rupee stronger and mockingly linked its fall to his predecessor's age."  Malviya hit back and said, "The rupee today stands among the most stable currencies in the world -- and that is no coincidence."  "Contrast this stability under the Modi government with the turmoil under the UPA government, when the rupee was in a free fall, depreciating by 36 per cent between 2011 and 2013," he added.

The BJP leader claimed that back then, "reckless" external borrowing, growing at more than 21 per cent annually, left the rupee "highly vulnerable".

Under the BJP-led National Democratic Alliance (NDA) government, external debt growth has been restrained to just 4.5 per cent annually, ensuring "greater resilience", he added.

Malviya further said when the US Federal Reserve signalled tapering in 2013, the rupee plummeted by 14.9 per cent in just four months, exposing the "policy paralysis" of the Congress-led United Progressive Alliance (UPA).

In contrast, after a similar tapering announcement in 2021, the rupee declined by only 0.7 per cent over four months, reflecting India's "strong economic foundations" today, he added.

"While the dollar remains strong and most currencies are under pressure, the rupee has fared far better than many. Against non-dollar currencies like the Euro and Canadian Dollar, it has even strengthened -- a scenario unheard of in 2013," Malviya said.

Despite ongoing geopolitical tensions and high US interest rates, India has avoided any "currency crisis", he said, adding that "this resilience is a testament to prudent economic management and robust fundamentals".