INSUBCONTINENT EXCLUSIVE:
Additionally, in the calendar year 2023, the local currency displayed remarkable stability against the dollar, marking the least volatility
it has witnessed in nearly three decades | (Photo: Shutterstock)2 min read Last Updated : Sep 01 2024 | 4:23 PM IST
The Indian rupee was
the second-worst-performing Asian currency in August after the Bangladeshi taka due to strong dollar demand and outflows from domestic
It depreciated by 0.2 per cent during the month.
The two were the only Asian currencies that experienced a decline against the US dollar
dollar, close to its lifetime low of 83.97 per dollar
This was despite the weakening of the US dollar
The factors that impacted the rupee are a slowdown in FPI inflows (mainly the equity segment), and increased dollar demand by importers
Baroda.
In the current financial year, the rupee has depreciated by 0.6 per cent, so far
The rupee was the third most stable Asian currency against the US dollar in the last financial year (FY24) after the Hong Kong dollar and
Singapore dollar, primarily due to timely intervention by the Reserve Bank of India
The rupee depreciated by 1.5 per cent over the year against 7.8 per cent in FY23.
Additionally, in the calendar year 2023, the local
currency displayed remarkable stability against the dollar, marking the least volatility it witnessed in nearly three decades.
The India
unit experienced a marginal depreciation of 0.5 per cent against the greenback
The last time the Indian unit exhibited such stability was in 1994, when it appreciated by 0.4 per cent.
As the rupee touched a record
low in August 2024 despite a weak US dollar, market participants expect the local currency to remain range-bound in the near term.
The
weakness in crude oil prices and recent changes to the MSCI index, which added seven Indian stocks and increased the adjustment factor for
of Treasury and Executive Director at Finrex Treasury Advisors LLP.First Published: Sep 01 2024 | 2:37 PMIST
