New Delhi: The Indian rupee became the worst-performing currency in Asia during August, as it depreciated by 3.9% in the past 21 days. The rupee closed at 71.56 against the US dollar on Wednesday- down 281 paise from 68.75 on July 31, 2019.
In comparison with the rupee, Chinese Yuan depreciated by 2.43%, Philippine peso by 2.94%, Korean Wong by 2.34% and Singapore Dollar 1.2%. The worst performing currency against the dollar globally has been South African Rand, that has seen a depreciation of 8.48%.
The Indian currency has been depreciating against the US dollar as foreign investors are pulling out of the Indian markets. Foreign Portfolio Investors have turned negative and the budgetary announcement on tax surcharge has been a factor that has restricted their activity.
The only currency that has made gains against the US dollar has been Japanese Yen, that has gained 1.94% against the US dollar in the past three weeks.
The rupee appears to be moving down quite sharply since July 31, when the Federal Reserve announced a rate cut even though India’s forex reserves have been increased to 5430 billion for the week ended August 9, against 5411.9 billion at the start of the financial year.
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Ms Kalinga