Here’s how the Indian rupee is performing against the dollar among 6 Asian currencies

The Indian rupee continues to inch up against the US dollar. Among top six Asian currencies, the Indian Rupee has appreciated by 0.4% against the dollar in April, Bloomberg data has shown. The only other currency to gain against the dollar this month was the third-placed Thai Baht.

The performance of the rupee has been attributed to the cumulative impact of the strong financial movements in the country including the drop in oil prices. With oil now trading below 80 dollars per barrel, the rupee has gained. Further, the US dollar index has weakened this month as well, reports claim. The continuous buy ins by FIIs into the stock markets is one of the reasons for the recovery.

Following a 10% loss in value the year before, the rupee has so far in 2023 stabilised at 81.84 to the dollar. The local currency increased 1.1% against the USD in 2023. Since the beginning of 2023, the average monthly trade imbalance (goods and services combined) has decreased from $12 billion to $4 billion. The rupee has been fairly stable so far in 2023, despite the continued uncertainty surrounding capital outflows. The increase in Fed rates followed by consecutive hikes in the repo ratae has made some impace, but seems to have stabilised by now.

According to the exchanges, the top six Asian currencies are poised as follows against the US dollar today.

Changes in the Indian rupee over time

Beginning the year 2000, the Indian rupee was worth 43.35. In the last 22 years, it has lost about 84% of its value in relation to the dollar. However, the noticeable rupee devaluation actually began in 2011.

The USD/INR pair traded at 45.70 in September 2011. The dollar’s value increased throughout the ensuing ten years, causing the rupee to reach 73.00 versus the dollar by September 2021. On December 2, 2022, 81.410 Indian Rupees were being exchanged for one USD. The Rupee is also in the midst of discussion for being accepted as global tender.