Due to strong dollar demand and outflows from domestic equities, the Indian rupee performed worse than any other Asian currency in August, trailing only the Bangladeshi taka. It lost 0.2% of its value over the course of the month.
Throughout the month, only these two Asian currencies saw a decrease in value relative to the US dollar. On Friday, the rupee’s value per dollar was Rs 83.86.
The rupee fell by 0.2% in August and is now trading at 83.87 against the dollar, near its all-time low of 83.97 against the dollar. This occurred in spite of the US dollar’s decline. The main factors affecting the rupee were the increase in importers’ demand for dollars and a slowdown in foreign exchange profits, particularly in the equity segment. The rupee fell versus the dollar, in contrast to the majority of other world currencies that increased, according to Bank of Baroda economist Sonal Badhan.
The rupee has lost 0.6% of its value thus far in the current fiscal year. Because of the Reserve Bank of India’s prompt intervention, the rupee ranked third among Asian currencies against the US dollar in the most recent financial year (FY24), behind the Singapore dollar and the Hong Kong dollar. The rupee lost 1.5% of its value during the year, compared to 7.8% in FY23.
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