Rupee Plunges: India Ranks 2nd Among Worst Performing Currencies, Which Neighboring Nation Takes Top Spot?

Rupee Plunges: The rupee has been at the second position among the Asian currencies that have performed poorly against the dollar. Due to strong demand for the dollar and withdrawal from domestic equities, it has declined by 0.2 percent during August. Bangladeshi Taka, which was at the first position in August, has performed the worst against the dollar. Currently, 119.67 Bangladeshi Taka are coming in one dollar. The rupee has declined by 0.6 percent against the dollar so far in the current financial year. 

Bangladeshi Taka performed the worst 

According to a Business Standard report, among Asian currencies, only the rupee and taka saw a decline against the dollar. The rupee has fallen by 0.2 percent in August. On Friday, the rupee closed at Rs 83.89 per dollar. This is close to its all-time low of Rs 83.97 per dollar. This poor performance of the rupee is at a time when the US dollar has weakened. The rupee has been badly affected due to the lack of FPI in the equity segment. Apart from this, the rupee has also been affected due to the increase in demand for the dollar by importers. In August, most foreign currencies have performed well against the dollar. 

RBI saved the rupee from falling 

The rupee has depreciated by 0.6 per cent so far in the current financial year. In the financial year 2023-24, the rupee was the third most stable Asian currency after the Hong Kong Dollar and the Singapore Dollar against the US Dollar. It had seen a decline of 1.5 per cent, whereas earlier in the financial year 2023, the rupee had fallen by 7.8 per cent against the dollar. This performance of the rupee was due to the activism of the Reserve Bank of India (RBI). 

In 1994, the rupee rose against the dollar 

In the year 2023, the rupee showed less volatility against the dollar. This was the best performance in 3 decades. At that time, the Indian rupee experienced a marginal decline of 0.5 percent against the dollar. The last time the rupee showed such stability was in the year 1994. During that time, the rupee went up by 0.4 percent against the dollar. Now experts hope that the performance of the rupee will improve going forward. RBI will not allow the rupee to cross 84 for now.

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