Rupee takes hit from all major currencies
Moneylife Digital Team 28 August 2013

At least eight foreign currencies, including Isle of Man pound, Gibraltar pound and Jersey pound currently trade over the 100 mark against the Indian currency. While euro and Jordanian dinar are in 90s, there are about 50 foreign currencies trading at over 50 level against the rupee

Even as the Indian rupee’s record fall against the US dollar continues to hog the limelight, the domestic currency also lost ground and breached key levels against a host of other currencies including British pound, euro and Swiss franc.


Adding to the rupee’s woes, the British pound on Wednesday crossed 106 level, euro went past 92, Swiss franc touched 75 mark, Canadian dollar was at 65, Australian dollar at over 60, while New Zealand dollar, Singapore dollar, Bruneian dollar and Libyan dinar crossed the 50 level.


Among even more expensive foreign currencies, one Kuwaiti dinar is now worth more than Rs240, Bahraini Dinar over Rs180, Omani rial has gone past Rs175 and Latvia Lat Rs130.


Against the most prominent foreign currency US dollar, the rupee has fallen to a record low of 68.75.


Since May, the US dollar has appreciated by about 28%, amid aggravating concerns over flight of foreign funds from India due to weak domestic economic conditions and global headwinds.


Rupee’s fall has been the same or higher against a host of other foreign currencies including pound, euro, Swiss franc for the same period.


The plunge has been less sharp against a few like Australian dollar (10%), New Zealand dollar (16%) and Brazilian real (8%).


A few currencies against which the rupee has appreciated since May include those in countries like Panana, Tongo, Surinam, Tajikistan, Solomon Islands, Salvador, Haiti, Kyrgyzstan, Liberia, Syria, Congo, Somalia, Sierra Leon and Guinea.


An analysis of foreign exchange rates across the world shows that Kuwaiti dinar is the most expensive against the rupee at current level of close to 243, followed by Bahraini dinar (182), Omani rial (178) and Latvian lat (130).


Among the major foreign currencies, British pound is the most expensive and hit a record high of 106.91 this afternoon, followed by euro, Swiss franc, US dollar, Canadian dollar and Australian dollar.


At least eight foreign currencies currently trade over 100 mark, including Isle of Man pound, Gibraltar pound and Jersey pound. Besides, euro and Jordanian dinar are in 90s. At least 50 foreign currencies trade at over 50 level.


The number of foreign currencies having a value higher than rupee is at least 100, while those valued less than Indian currencies include those of Bangladesh, Liberia, Algeria, Serbia, Kenya, Angola, Japan, Nepal, Pakistan, Albania, Syria, Iceland, North Korea, Sri Lanka and Nigeria.


Currencies in countries like Guyana, Yemen, Hungary, Malawi, Zimbabwe, Costa Rica, Chile, Rwanda, Congo, Burma, South Korea, Iraq, Somalia, Lebanon, Burundi, Mongolia, Tanzania, Colombia, Uzbekistan, Uganda, Cambodia, Paraguay, Lao, Belarus, Indonesia, Iran and Vietnam also carry value less than one rupee.

Abhijit Gosavi
8 years ago
I feel like laughing when "respected" finance columns from the free media (actually paid media) start saying the rupee is under-valued (essentially mimicking Chhidu's words)!!! The livemint, firstpost, Biz Standard, etc etc. The rupee was in fact over-valued, and that was because of the horrible inflation that went unchecked for the last 10 years. The market is just correcting itself --- now that the US Fed won't print any more money (or at least that's the signal they've given). I also fear that many business journos in the paid media have no education in economics/statistics. No names, but when ST starts writing about the economy and the invented Sen-Bhagvati divide, I read that only for comic relief.
8 years ago
Why on a Bank Holiday they allowed Forex to be traded on exchange ?
Kamal Gupta
8 years ago
It is really very shame and painful for us that we are comparing our Rupee with those countries which are much behind in every thing. We have everything in our country but due to lack of political leadership we are crawling on the ground. Government and RBI is not taking any steps so that rupee downward trend can be reversed. Now it is a time when government should take exceptional decisions since we are facing a very extraordinary situation. RBI should cut the interest rates by at least 250 to 300 basis points are more. This will give an indication to everybody and this falling trend of Rupee will reverse. It should roll back its earlier money tightening measures in the first step and then decrease in interest rates. These two measures will bring confidence in the market and industry will start performing and growth will come. This will result correction of rupee and it will come down to 55-56 also in comparison to dollar. Growth will come and inflation is always a bye product of growth and we should live with this fact. Further in today scenario also inflation will increase since CAD will increase since we are importing 80% of our oil requirement from abroad. If in this scenario if RBI will increase interest rates then situation will become more complex. We should ban import of gold completely for some time and give some relief to the people who are associated with the gold and jewellery trade specially to the craftmen.
Abhijit Gosavi
Replied to Kamal Gupta comment 8 years ago
Moving money here and there, adjusting rates, and stopping gold exports is not going to change anything fundamentally wrong. Can you treat a very sick patient by just eliminating the symptoms of the disease? The key economic measures that need to be taken are improving infrastructure, controlling inflation, providing incentives for manufacturing, and driving exports up. Harvard/Oxford- trained economists know that very well. There is leadership lacking. The NDA has controlled inflation, and were on the right path for infrastructure improvement (although they could have done more).

Replied to Kamal Gupta comment 8 years ago
Lack of political leadership?
Extraordinary leadership skills are on display while plundering the nation's resources and wealth.

But, it is amazing, how the same political leadership just goes missing when right decisions need to be taken in the interest of the nation's economy.
8 years ago
Mother India in the same league as some of the rogue nations . . . who got her there?
8 years ago
Should not the government come out with a Introspect Report enumerating facts, causes, steps proposed and initiated?
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