Rupee tumbles 3% in 2024, turbulence to ease in next year

The Indian rupee tumbled 3 per cent in 2024 as concerns over slower economic growth and the green buck's global strength weighed, but it was among the least volatile currencies in the world and the headwinds may be less intense in the coming year.

MUMBAI:

Rupee settled at new lows as the year closed as dollar's resurgence weighed on emerging-market currencies.

The action-packed 2024 continued to impact the rupee's exchange rate against major currencies throughout, with a series of geopolitical events ranging from the Russia-Ukraine war and crisis in the Middle East to trade disruptions in the Red Sea and elections across several major economies.

Global factors, including measures taken by major central banks, have hit not only the rupee-dollar dynamics but also disrupted the exchange rates of currencies across all emerging economies. In fact, the rupee's fall with respect to the dollar has been less than its depreciation in terms of other currencies. And it has ended up with gains compared to euro and the Japanese yen.

RBI ex-governor Shaktikanta Das also said in the central bank's December bimonthly monetary policy that the Indian rupee has remained less volatile compared to its peers in emerging markets.