INDIA New England News
Mumbai– India’s interest rates, high inflation and Reserve Bank’s market interventions weakened the rupee despite a massive inflow of direct and market-linked foreign investments during the pandemic-impacted year.
While major Asian currencies have appreciated against the US dollar such as Chinese yuan by 6.10 per cent, Korean won by 5.50 per cent and Malaysian ringgit by 1 per cent, the Indian rupee depreciated by 3.10 per cent.
It closed 2020 at 73.07 to a greenback.
“In the first half of 2020, there was a massive sell-off in the market due to the lockdown. Later, investors realised that lower crude oil prices and reduced imports was a positive for India,” said Sajal Gupta, Head, Forex and Rates, Edelweiss Securities.