Rupee vs Dollar: INR Down to 72.03; Here's a Look At The Rise And Fall of the Indian Currency Against The US's Over Decades
The Indian rupee fell below the 72 mark against the US Dollar in opening trade on Friday. Reportedly, the depreciation in the Rupee is due to continued foreign fund outflows and losses in the equity markets. The Indian currency looks set for the biggest monthly fall in six years as it has fallen 4.6 percent this month and 3.1 percent in 2019.
Mumbai, August 23: The Indian rupee fell below the 72 mark against the US Dollar in opening trade on Friday. Reportedly, the depreciation in the Rupee is due to continued foreign fund outflows and losses in the equity markets. The Indian currency looks set for the biggest monthly fall in six years as it has fallen 4.6 percent this month and 3.1 percent in 2019. India’s 72 Years of Independence: Track Rupee's Decline Over the Years to All-time Low of 70.08 against U.S. Dollar.
The global central banks including the Reserve Bank of India are on a monetary easing spree to revive the world economic growth and investors’ sentiment. However, there hasn't been any respite till now. At a time when the current economic situation of the country is grim, a feeble Rupee is not a good sign for the market as it indicates that foreign investors are bearish on the market and exiting their positions. Niti Aayog Chief Rings Warning Bell: 'Government Should Take Steps to Deal With Unprecedented Stress in Financial Sector That is Resulting in Slowdown'
Let's take a look at how the currency has moved from the year 1950 till now:
1950-60
From 1927 to 1966, the value of the Indian currency was: 13 rupees = 1 pound sterling.
1960-70:
In 1966, the rupee was devalued and then pegged to the US Dollar at a rate of 7.5 rupees = 1 dollar.
1970-80:
The Indian rupee fluctuated between its pegged rate of 7.5 to a dollar to about 10 to a dollar.
1980-90:
In this decade, the rupee breached the 10 to a dollar mark around 1983 during the imposition of Indira Gandhi's emergency. By 1989, the rupee crossed 16 to a dollar.
1990-2000:
Due to the political instability in the country, the Indian rupee saw a steep fall. under HD Deve Gowda floated around the 36 mark. However, a year later under IK Gujral, the rupee went from 36 to 41, crossing the 40 mark.
2000-2010:
The Indian rupee fell from 41 to 48 in 2002 and stabilised around the 45 to a dollar mark by 2004.
2010-2019:
The rupee swung from 45 in 2004 to 62 in 2013 and appreciated to 59 to a dollar in May 2014. However, the Rupee has for the first time crossed the 72 mark in 2019.
Reasons why the rupee crossed Rs 72 mark against the dollar today:
Few domestic and international reasons are acting as some of the major triggers behind the fall in the Indian currency. There was also a sudden weakness in the Yuan, which pushed emerging market currencies lower. Reportedly, there has been a general strength in the dollar, as markets around the globe, have kept their eyes on the US central bank's annual Jackson Hole symposium, where Fed Chairman Jerome Powell is expected to address policymakers and economists.
However, in a ray of hope, the Indian rupee has not been battered as badly as other Asian or emerging market currencies. The India rupee is down 1.82 per cent against the US dollar year-to-date. However, the Chinese Renminbi and Taiwanese Dollar are down over 2 per cent each. The South Korean Won is down 8 per cent, according to a Hindu Business Line report.
(The above story first appeared on LatestLY on Aug 23, 2019 04:23 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).