The Indian Rupee is on its way to become Asia’s worst currency: The Indian Rupee continues to fall in value. According to a research, the rupee has become the Asian market’s poorest performing currency. The fundamental reason for this is that foreign investors are continuing to sell.
Indian rupees The rupee will most likely end the year 2020 as Asia’s poorest performing currency. In fact, the Indian rupee’s depreciation is still ongoing. According to a research, the rupee has become the Asian market’s poorest performing currency.
Withdrawal of funds by foreign investors
Significantly, the sell-domination off’s indicates that foreign investors are swiftly withdrawing funds from the domestic stock market. According to the research, the Indian rupee fell by 1.9 percent against the US dollar in the third quarter. The Indian currency has now reached Rs 76 per dollar versus Rs 74 per dollar during this time period. The performance of the rupee may appear weak even when compared to smaller South Asian currencies such as the Pakistani Rupee and the Sri Lankan Dollar. Most Asian currencies, on the other hand, have risen against the US dollar in the last year. In terms of foreign currencies, the Renminbi of China, the Peso of the Philippines, the Won of South Korea, the Ringgit of Malaysia, and the Thai currency weight all saw significant advances.
Withdrawal of $420 million
Global investors withdrew US $ 420 million (about Rs 31,920 crore) from the Indian stock market, according to the report. This is the largest withdrawal of capital from any Asian stock market. Aside from that, the Indian stock market is under persistent pressure due to a new infection of the corona virus Omicron. Investors’ fears have grown as a result of this predicament.
The Taiwan dollar is the most valuable currency.
This year, the Taiwanese dollar was Asia’s best-performing currency. In comparison to the US dollar, it increased by 6.4%. Following this, China’s currency, the Renminbi, gained 6.2 percent against the US dollar during the course of the year. Similarly, the Philippine peso gained 5.2 percent last year, while the South Korean won gained 4.2 percent and the Malaysian ringgit gained 1.0 percent. Thailand’s baht, on the other hand, The value of the Bangladesh taka and the Vietnamese dong against the dollar has remained stable during the last 12 months.
Direct financial impact on the average person’s wallet
Explain that India buys 80% of its crude oil from other countries. Because the rupee is first changed into dollars to buy items from outside, the rupee will cost more due to the cost of the US currency. Due to the rupee’s depreciation, fuel, gasoline, and other petroleum goods would be more expensive, putting a strain on your wallet. If the price of petroleum goods rises as a result of the rupee’s depreciation, freight and transportation will become more expensive, raising inflation for the average person.