It’s Literally ‘Sabse Bada Rupaiya’ Post November 4

New Delhi: After tracing a downward trajectory for the longest time, there has been a reversal in the depreciation of the rupee and it has performed better than other currencies following the six-month waiver received by India from the US government on Iran sanctions.

On November 21, the rupee closed at an 11-weeks high at Rs 71.3/dollar, appreciating by 2.9 percent in the month of November 2018 after India won itself a waiver from the US.

The Indian rupee had depreciated by 14.1 percent from the start of the financial year FY19 and touched a low of Rs 74.4/dollar on October 9, 2018.

According to a report prepared by CARE ratings, countries like China (-0.1 percent), South Korea (-0.6 percent), Taiwan (-0.5 percent), which were also granted waiver by US on Iran sanctions have seen their currencies depreciated post November 4, 2018. On the other hand, the Japanese yen (0.1 percent) and Turkish lira (0.7 percent) have appreciated against the US dollar.

The Indian rupee had depreciated by 14.1 percent from the start of the financial year FY19 and touched a low of Rs 74.4/dollar on October 9, 2018. The currency traded in a narrow range of Rs 73-74/dollar and on an average was at Rs 73.6/dollar in the month of October'18.

The report attributed the depreciation in the rupee to a number of factors like the US' decision to hike rates thrice this calendar year, a strong US economy providing impetus to dollar as most currencies weakened, geo-political trade tensions between US and China, uncertainty emanating from the US sanctions from Iran, elevated crude oil prices, FPI outflows from India and its declining forex reserves.