Indian rupee sinks to month-low as Pranab takes oath

Reflecting the market’s lack of confidence in his ability to lead the country, the Indian rupee continued to sink as Pranab Mukherjee took oath as the 13th President of the country this morning.

The Indian rupee extended its losses for the fourth straight session Wednesday and depreciated below the 56-mark against the US dollar on sustained dollar demand from importers and a strengthening dollar.

The rupee has depreciated by about 2.4 per cent since last Friday’s close, with news about Mukherjee’s victory further dampening investor sentiment.

The Indian rupee fell to 56.41 against the US dollar and 15.36 against the dollar-linked UAE dirham, its lowest since June 29, in early trade on Wednesday as President-elect Mukherjee and outgoing President Pratibha Patil reached Indian Parliament for the former’s swearing-in ceremony.

Mukherjee took the Presidential oath in the Central Hall of Parliament at around 10am UAE time (11:30am India time).

While his supporters have repeatedly claimed that the much-needed economic reforms agenda will get back on track in India now that Mukherjee is President, the markets have voted with their wallet, with the benchmark Bombay Stock Exchange Sensitivity Index, or Sensex, declining by more than 400 points, or 2.4 per cent, since news about his election was confirmed.

At 10am UAE time, Pranab Mukherjee was sworn in as the 13th President of India. He was administered the oath of office in the central hall of Parliament by SH Kapadia, the Chief Justice of India. As is tradition, Mukherjee was given a 21-gun salute after taking the oath as the President.

(Image courtesy Shutterstock)

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