During the last one year, there has been a sharp decline in the price of Indian currency. Rupee has continuously made a new record low during the last few days. This sharp fall of rupee is also increasing political rhetoric in the country. Opposition parties are constantly targeting the government for this. During the last one year, the rupee has fallen by more than 5 rupees against the dollar (USD) and for the first time it is close to crossing 80 against the dollar. However, if we look at many other countries, the dollar is still in a better position than their currency.
Dollar getting stronger due to these reasons
Actually, the changing situation has raised the risk of recession on the whole world. Inflation in America is at a 41-year high. To control this, the Federal Reserve is increasing interest rates rapidly. After the latest inflation data, the possibility of a one percent increase in the interest rate in the US has intensified. Dollar is getting the benefit of rising interest rates in America. Fearing recession, foreign investors are withdrawing money from emerging markets and buying dollars as a safe investment. This phenomenon has strengthened the dollar in an unexpected way. For this reason, for the first time after several decades, the dollar and the euro have become almost equal, while the euro used to be a more expensive currency than the dollar.
The value of Rs fell so much
Talking about India, the rupee was at a level of 74.54 against the dollar a year ago. Right now it has gone to 79.90 and can go beyond 80 anytime. In this way, the Indian rupee has weakened by 6.6 percent against the dollar in the last one year. If you look at other neighboring countries, the currency of Pakistan is included in the list of worst performing during this period. During the last one year, the value of the Pakistani rupee has depreciated by 31.65 percent against the dollar. A year ago, the value of one dollar was equal to 159.10 Pakistani rupees, which is currently equal to 209.46 Pakistani rupees.
Worst condition of Sri Lanka
The currency of another neighboring country Nepal has also broken during this period. A year ago, the Nepalese rupee was at 117.70 against a dollar. Right now it has gone to 127.66 against the dollar. In this way, the Nepalese currency has weakened by about 8.50 percent in the last one year. The worst situation is in Sri Lanka. The value of the Sri Lankan rupee, the currency of this neighboring country, which is facing the biggest economic and political crisis since independence, has decreased by about 84 percent during this period. A year ago, the value of one dollar was equal to 196.55 Sri Lankan rupees, which has now become equal to 360.82 Sri Lankan rupees.
Nepal, Afghanistan currency fell
The situation in neighboring countries like Bangladesh and Afghanistan is also not good. A year ago, the price of one dollar was equal to 83.27 Bangladeshi taka, now it is equal to 93.91 taka. In this way, the price of Tuck has fallen by 12.77 percent against the dollar during this period. The currency of Afghanistan, which has recently gone through political instability, is also in bad shape. A year ago, the Afghan Afghani was at the level of 79 against the dollar. It has now fallen 25.64 percent to 87.95.