India’s tumbling rupee saw a slight uptick on Thursday to 67 per dollar from 68 per dollar the day before, Reuters reported, after the nation’s central bank decided to lend dollars to state-owned oil companies “until further notice,” easing pressure on the currency.
The day before, the Indian rupee had plummeted to a record low as sluggish growth and political turmoil ahead of national elections next year continued.
Since oil is India’s biggest import, the plummeting rupee and higher oil prices are “sharply increasing its import bills,” the New York Times reported.
Analysts have pointed to the South Asian nation’s persistent, large current-account deficit, which makes India a net debtor. To bridge this gap between imports and exports, India needs a constant inflow of money to support its currency.