India’s rupee became the second worst Asian currency in August, after Bangladesh’s Taka. While most Asian currencies gained against the dollar, both Rupee and Taka weakened. The Indian unit was down 0.17 per cent in August and 0.13 per cent in September so far against the dollar. While the currency weakened in the last two months, the Reserve Bank of India’s intervention ensured that volatility was least as the currency traded in a tight range. Intervention also prevented the rupee from hitting the psychological level of 84 per dollar.
In the current financial year (FY25), the rupee has depreciated by 0.6 per cent. It 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.
First Published: Sep 06 2024 | 11:53 AM IST
