Indian rupee ends 2022 as one of Asia’s worst performing currency, falls 10.14%, worst since 2013

Indian rupee this year ends at a low of over 10%, the worst since 2013, becoming one of Asia’s worst-performing currencies. The year 2022, marked a slow growth for world economies.

Performing as one of Asia’s worst currencies, the Indian rupee ends this year with a fall of 10.14 per cent, making it the biggest annual decline since the year 2013. Many factors contributed to the decline such as tight monetary policies, oil prices sparked by the Russia-Ukriane conflict and more, Reuters reported. 

The rupee stands at 82.72 to the US currency dollar soared due to US Federal Reserve’s monetary policies standing at its biggest annual gain since 2015. 

Japanese Yen performed the worst by falling more than the rupee, which was down over 12 per cent against the dollar. 

The second factor, a rise in oil prices brought on by Russia’s invasion of Ukraine also affected the rupee and resulted in India’s current account deficit reaching a record high in the third quarter of the year. 

In the coming year 2023, traders and analysts predicted the currency to move between the 81.50 and 83.50 range in the first quarter. They added that equity inflows will also act for the rupee to move. 

Warning of possible heads up for recession, Christopher Wong, an OCBC Bank FX strategist said, “There’s going to be a period of softness in global equities… If we get a selloff in Indian shares, I’ll be less optimistic on the rupee.” 

He added that the South Korean won and the Thai baht are predicted to perform better next year, but the Indian rupee might still lag and might not be a top choice in the market.