Indian Rupee is now the worst in Asia
The Indian National Rupee is now the worst currency in Aisa. On Thursday morning, its value fell to 68.52 versus the US dollar. This is an all-time historic low for our currency. The currency has depreciated by 7.7 percent since January this year.
What is now going to happen? There will be pressure on inflation, especially because crude prices are rising. What about food inflation? With the monsoons likely to be favourable, hopefully, the risk of higher food inflation will be mitigated to an extent, say experts.
The main villains are Current Account Deficit and "steady capital outflows". There are other reasons, too. "The depreciation of the Real Effective Exchange Rate of the Indian Rupee is partly due to heightened uncertainty/risks for India, arising from US sanctions on Iran and Russia," says Dr. Arvind Virmani, a former Planning Commission member.