The exchange rate will soon have to play a bigger adjustment role4 min read 18 Oct 2022, 10:39 PM IST
The rupee’s dollar value has only two of four determinants in its favour and will need more flexibility to ease other pressures
The currencies of most major economies have lost ground against the US dollar over the past year. The rupee is no exception. Only four of the 34 currencies tracked by The Economist every week have appreciated against the US dollar since October 2021—those issued by Russia, Brazil, Mexico and Peru. And if one leaves aside habitually mismanaged economies such as Turkey, Argentina and Pakistan, then it appears that emerging-market currencies have done no worse than their peers in the rich world, in stark contrast with the situation in 2013.
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