Asian Currencies Surge as Indian Rupee Faces Temporary Setback
The Indian rupee faced a 0.6% depreciation in the last quarter due to short-term factors, while Japan's yen appreciated by 9% and the Chinese yuan by 3% against the U.S. dollar. Experts believe the rupee's decline is temporary, with long-term stability expected.
- Country:
- India
In the last quarter, the Indian rupee grappled with stiff competition from prominent Asian currencies, notably Japan's yen and the Chinese yuan. Data indicates a 0.6% depreciation in the rupee over this period while the yen and yuan gained ground against the U.S. dollar.
The yen experienced a significant 9% appreciation following Japan's first rate cut in two decades, enhancing market attractiveness and boosting yen strength against the dollar. Simultaneously, China's yuan rose by over 3% after a government stimulus package invigorated market confidence.
Despite the rupee's temporary decline, experts, including Ajay Kedia of Kedia Advisory, remain optimistic about its resilience. A Fed rate cut previously aided rupee strength. Observers continue to watch the situation, anticipating eventual rupee recovery due to its inherent stability.
(With inputs from agencies.)
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