- Monday, April 28, 2025
By: Shubham Ghosh
The Indian rupee saw a disappointing end to 2022 as it finished the year as the worst-performing Asian currency with a fall of 11.3 per cent, its biggest annual slump since 2013, as the dollar rocketed on the US Federal Reserve’s aggressive monetary policy stance to tame inflation, Reuters reported.
The Indian currency finished the year at 82.72 to the U.S. currency, down from 74.33 at the end of 2021.
The dollar index was headed for its biggest yearly gain since 2015.
The rupee was also fell victim to a rally in oil prices sparked by the Ukraine war, which pushed India’s current account deficit to a record high in the September quarter in absolute terms, the report added.
Market participants believe ahead of 2023 that the rupee would trade with an appreciation bias, finding relief from easing commodity prices and hopeful of foreign investors continuing to buy Indian equities.
“The Fed could keep rates higher for longer than anticipated and if the slowdown in developed economies turns into a prolonged recession, India’s exports could be hit severely, which are two key risks for the rupee,” Raj Deepak Singh, head of derivatives research at ICICI Securities, was quoted as saying by Reuters.
