Despite fall, rupee doing better than other global currencies

The Indian rupee’s 1.5 per cent decline against the US dollar in 2013 has stoked fears of costlier imports and a worsening balance of payments situation. But the rupee hasn’t fared so badly when compared to other global currencies so far this year.

The rupee’s fall this year comes in the wake of a 3.1-per cent decline in 2012. A larger fall has been avoided due to significant inflows of foreign capital into the equity market, but demand for the US dollar from importers such as oil companies exerted pressure on the rupee.

BRICS GROUPING

Among India’s peers in the BRICS grouping, South Africa’s rand has been one of the worst performers of the year, plummeting 11.1 per cent. The Russian ruble has also fared worse than the rupee, depreciating by 2.1 per cent. But Brazil’s Real has appreciated 0.6 per cent and China’s renminbi by 1.7 per cent.

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