Rupee’s worst performance against Asian currencies this month

Ahmedabad: Despite the weakness in the dollar, the Indian rupee has been underperforming its Asian counterparts. The rupee has emerged as one of the worst-performing Asian currencies on the back of various headwinds. The main reason for the weakness in the local currency is the continuous withdrawal from debt by foreign portfolio investors (FPIs) in recent months, sluggish activities in the equity market and slow foreign direct investment (FDI) inflows. Despite the weakness in the dollar globally, this trend has not been reflected in the dollar/rupee. During the last month, the rupee has been hovering around 85.50. While other Asian currencies have appreciated between 1-2 per cent during this period, the rupee has remained under pressure.

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