Less volatility in INR reflects India's strong macroeconomic fundamentals and improved external sector outlook, Says RBI
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09-Oct-24
10:53
Hrs IST
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The Reserve Bank of India governor stated in its policy statement that during the current financial year (up to October 8), the exchange rate of the Indian rupee (INR) remained largely range-bound. The INR also continued to be the least volatile among peer EME currencies. This was so even during the high volatility episode, following the unwinding of yen carry trade in early August 2024. The lower volatility of the INR reflects India's strong macroeconomic fundamentals and improved external sector outlook, On a financial year basis (up to October 8), the Indian rupee (INR) registered lower depreciation (-0.7 per cent) against the US dollar as compared to some of its emerging market peers like Philippine peso, Russian ruble, Turkish lira, Brazilian real, Argentine peso and Mexican peso. During 2024-25 (up to October 8), the INR was the least volatile (in terms of coefficient of variation) amongst peer EME currencies including Chinese yuan, Vietnamese dong, Philippine peso, Turkish lira and Chilean peso. Powered by Capital Market - Live News |
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