New Delhi [India], October 4 (ANI): The Indian rupee faced strong competition in the last quarter from other major Asian currencies, particularly Japan’s yen and the Chinese yuan.
According to data, the Indian rupee depreciated by 0.6 per cent over the past three months, while Japan’s yen and the Chinese yuan appreciated against the U.S. dollar during the same period.
The Japanese yen saw a sharp appreciation of 9 per cent against the dollar, while the Chinese yuan rose by more than 3 per cent. Experts noted that the decline in the Indian rupee was not due to any long-term factors but rather short-term events that provided a boost to the Japanese and Chinese currencies.
In Japan, the yen appreciated significantly after the country announced its first rate cut in 20 years, which made its markets more attractive to investors. The increase in liquidity within the Japanese economy resulted in a stronger yen against the dollar.
Similarly, China’s currency benefited from a stimulus package announced by the government. This stimulus helped boost market confidence and contributed to the yuan’s appreciation against the dollar.
“The Indian rupee has depreciated by 0.6 per cent in the last quarter against the dollar, while other major Asian currencies like Japan’s yen and the Chinese yuan have appreciated. The reason behind this is not a long-term effect; these two currencies appreciated due to short-term events like the rate cut in Japan and the Chinese stimulus package, which contributed to the appreciation. The Indian rupee remains strong against the dollar and improved following the Fed’s rate cut. It will be in range of 83.56-84.28” said Ajay Kedia, Director, Kedia Advisory in an exclusive conversation with ANI.
Despite these developments, experts believe the decline in the Indian rupee is temporary, as the currency remains fundamentally strong. The rupee had strengthened following the U.S. Federal Reserve’s rate cut, which made Indian markets more attractive to foreign investors. However, the recent short-term events in Japan and China have temporarily impacted its performance against the dollar.
Markets will continue to monitor these developments, but experts remain optimistic about the long-term stability of the Indian rupee. (ANI)
Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News
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