The India rupee fell below the 80 per for the first time on Tuesday. Foreign investors have pulled their money out of the economy because of the record low, according to experts. The market data shows that it has fallen 7.1 per cent since January 19th.
Foreign investors are averse to recession because of the inflation worries due to rising interest rates and rising interest rates. The equity market in India has also suffered the brunt of this impact, as well as the currency.
The benchmark index of India's Sensex has fallen to 54,500 since its peak of 61,700 in October 2021. In June, Sensex fell to as low as 51,000.
The worst-hit country in the world is not the worst-hit country. It is not the worst-hit country in Asia. Sri Lanka, which has been battling its worst economic crisis since independence in 1948, has seen its fall by almost 80 per cent in the last six months. On July 19 the Sri Lankan currency fell to 362 per US dollar from 202.2 per on January 19th.
The Pakistani rupee has fallen 22 per cent from 176.16 per day on January 19 to 216.36 on July 19. The Japanese yen has fared worse than the rupee, falling 20.48 per cent in the last six months. The British pound has done worse against the US dollar than the euro. The pound has fallen 13.69 per cent in the last six months, compared to the euro's fall of 11.3 per cent.
Other Asian currencies like the Thai baht, Korean won, Bangladeshi taka, Philippine peso and Taiwanese dollar have performed worse than the rupee.
The rupee of Sri Lanka has fallen over 66 per cent against the rupee in the last six months. It is trading at 2.7 per INR on January 19 and has fallen to 4.5 on July 19.
Since January, the Pakistani rupee has fallen 16.1 per cent against INR from 2.36 per INR to 2.74. The Japanese yen has suffered a weakened performance against the INR, falling 13.15 per cent in the last six months.
Which currency has performed better than the rupee?
The Chinese yuan renminbi, Malaysian ringgit and Australian dollar are better than the Russian ruble, which has performed better than the rupee as Moscow fights Western economic sanctions after it invaded Ukraine late February.
The ruble has risen 32.03 per cent from 1.03 per day on January 19 to 0.7 per INR on July 19. According to official data, the Russian currency has rebounded due to a rise in oil exports to India, which have surged by 286 per cent in the January-April 2022 period.
The Australian dollar has risen 2.15 per cent from 0.0186 to 0.0182 per INR. The Malaysian ringgit and Chinese yuan renminbi have surged close to 1.5 per cent against the value of INR in the last six months.