Indian Rupee is the worst currency in Asia – The performance of the Indian rupee has been very weak at the end of 2021. It is getting weaker in front of the US dollar. It has broken down to 2 per cent in this quarter.
Rupee continues to weaken
The declining trend of the Indian rupee continues. The report of the news agency Bloomberg says that the Indian rupee has become the worst performing currency in the Asian market. The main reason behind this is the ongoing selling by foreign investors. This simply means that foreign investments are withdrawing their money from the country’s stock market.
A Bloomberg report said that the Indian rupee has weakened by 1.9 percent against the US dollar in the October-December quarter. It has now crossed Rs 76 per dollar against Rs 74 per dollar.
Why is the Indian Rupee weakening?
According to the report, the global fund has withdrawn US $ 420 million (about Rs 31,920 crore) from the Indian stock market. This is the most capital withdrawn from any stock market in Asia.
Due to the new infection of corona virus Omicron, there is constant pressure on the Indian stock market. In such a situation, the concerns of investors have increased. Apart from this, there are indications of record losses in India’s trade.
Along with the US Central Bank Federal Reserve, central banks around the world are changing their policy. In order to control inflation, interest rates are set to increase.
Does the weakness of the rupee directly affect the pocket of the common man?
India buys 80 percent of its crude oil requirement from abroad. The rupee will cost more due to the cost of the US dollar. Because, to buy goods from abroad, rupee is first converted into dollar. This will make petrol, diesel and other petroleum products expensive.
So the freight will become expensive. Traffic will be expensive. It will affect every small and big thing. The weakness of the rupee will have a significant impact on Indian students studying abroad. Due to this their expenses will increase.
They will have to pay a higher price for things. Apart from this, Indians going abroad will also have to spend more. On the other hand, weakness in rupee is good news for Indian IT companies. This will increase their earnings. Similarly, exporters will benefit, while importers will suffer.