The Indian rupee finished the year as one of Asia's worst-performing currencies with a fall of 10.14 percent, the biggest...
Digital Desk: The Indian rupee this year ends at a low of over 10%, the worst since 2013, becoming one of Asia's worst-performing currencies. Notably, the year 2022 saw the lowest growth in global economies.
The Indian rupee finished the year as one of Asia's worst-performing currencies with a fall of 10.14 percent, the biggest annual decline since 2013. According to Reuters, many factors led to the fall, including tight monetary policies, rising oil costs caused by the Russia-Ukraine conflict, and others.
The rupee stands at 82.72 against the US dollar, having soared due to the US Federal Reserve's monetary policies, marking its highest annual gain since 2015.
The Japanese yen performed the worst, falling more than the rupee, which was down more than 12% against the dollar.
The second factor, a jump in oil prices caused by Russia's invasion of Ukraine, also impacted the rupee, resulting in India's current account deficit hitting a record high in the third quarter of the year.
Traders and economists expected that the currency will move between 81.50 and 83.50 in the first quarter of 2023. They also stated that equities inflows will cause the rupee to move.
Christopher Wong, an OCBC Bank FX strategist, warned of a probable recession, saying, "There will be a period of weakness in global equities... I'll be less optimistic on the rupee if there is a selloff in Indian stocks."
He added that the South Korean won and Thai baht are expected to do better next year, but the Indian rupee may still lag and may not be a top choice in the market.
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