Rupee not weakened, it is US dollar that has strengthened: Eco Survey


NEW DELHI: It isn’t that the rupee has weakened, however it’s the US greenback that has strengthened. Irrespective of what number of tweets are written in opposition to that commentary, it’s a reality, the Financial Survey 2022-23 reiterated.

On a monetary 12 months foundation, that’s, from April to December 2022, the rupee has depreciated in opposition to greenback by 8.3 per cent.

Over the identical interval, the greenback has appreciated by 4.4 per cent when it comes to the greenback index.

This holds even on a calendar 12 months foundation, that’s, from January to December 2022, the rupee has depreciated by 10.8 per cent whereas the greenback has appreciated by 6.4 per cent.

The Nominal Efficient Change Price (NEER) of the US greenback (27 economies) appreciated by 7.8 per cent within the calendar 12 months 2022, as much as December, whereas the NEER of India (64 economies) depreciated by 4.8 per cent, the Survey stated.

“Several other currencies depreciated even more value against the dollar than the rupee. Thus, the external value of rupee vis-a-vis the dollar has seen very orderly movements during the year since the onset of the current geopolitical crisis.”

Additional, the rupee appreciated in opposition to choose main currencies barring the greenback. The common change fee of rupee in opposition to the pound sterling appreciated by 6.7 per cent in April-December 2022 over April-December 2021. This fee of appreciation was 14.5 per cent with respect to the Japanese Yen and 6.4 per cent in opposition to the Euro.

On a monetary 12 months foundation, that’s, between April and December 2022, the rupee depreciated 3.4 per cent and 4.0 per cent measured when it comes to 6-currency and 40-currency tradeweighted indices, respectively. “Thus, even in real terms, the rupee witnessed modest depreciation in the face of global spill overs,” the Survey advised.

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