Indian Rupee Is Not Alone, Here Are 5 Worst Performing Currencies In The World
29-year old PhD scholar Sanchita Khurana leaves for New York tonight on a Fulbright research grant. The past few days have been unnerving for Khurana as she has watched the rupee tumble against the US dollar, hitting new lows almost everyday. ¡°
The Indian rupee on Friday breached 71-mark for the first time and if the fear of experts is anything to go by, the rupee hasn't touched the nadir yet and worst days are ahead. But Indian rupee isn't the only currency gasping for breath in the global economy, other currencies too have been performing badly to such an extent that these countries are now staring at the economic crisis.
afp
Turkey's Lira is one of those currencies and a lot has been written about it.
Here is the list of currencies which are performing badly against the US dollar at present.
1. Turkish Lira
Since March, Turkey has been facing steep devaluation of its currency Lira against the US dollar. Today, Lira is stationed at 6.457438 against one USD and this value used to be around 3.46 Lira against US dollar if we go by the average of last half a decade.
afp
The big reason for the devaluation of Turkish Lira stems from the fact that Turkey's external debts have soared over last few years, which implies that Turkey borrowed a significant amount of US dollar and Euro denominated debts. The rising inflation rates in the country further plagued the currency as it slowly witnessed depreciation in foreign exchange markets.
2. Argentine Peso
Argentine Peso is the second currency after Turkish Lira, which is really seeing depreciation in value against the US dollar. Today, the Argentine Peso is placed at 38.733610 against a USD. If we see its performance, throughout last year, it was placed at 18 against a USD, but last few months have seen a massive fallout.
afp
Argentina has seen its currency really falling this year-hitting record lows. The Argentian Peso by 45 percent since the start of this year. The investors are dumping Peso as they believe that South America's third-biggest economy will probably default amid slowing economy, soaring inflation rate and crushing debts. One can imagine the gravity of the situation the IMF had to give $50 billion of a bailout to Argentina in June this year.
3. Brazilian Real
The Brazilian currency Brazil Real also hasn't been doing the Samba for a while now. Today, it's stationed at 4.149759 against a USD. The crisis in Turkey and Argentina are perhaps causing a domino effect for Brazil, which in economic terms is called Contagion.
afp
It implies that the investors fear the collapsing currencies and then they avoid investment in similar countries. Due to Contagion effect, the investors avoid emerging markets and look for safer options like the US.
4. South African Rand
South African Rand (ZAR) is another currency which isn't doing well. Today, it's placed at 14.692607 against a USD and for the last few months, it has been seeing devaluation against the USD. In last one month or so, the ZAR has lost considerable value against the USD.
On August 1, it was placed at 13.281733 against a USD which is now has gone up to 14.692607 which is an increase of over one ZAR.
5. Indians are feeling it now
The rupee losing its value against dollars, Indians too have started feeling the heat. Sanchita Khurana, a PhD Scholar who is going to New York on Fulbright research grant has been keeping an eye on the devaluation of the rupee.
¡°I have been waiting and hoping for the rupee to recover so that I can exchange it for some dollars, which I can keep as funds supplementary to my grant amount.
But I guess it¡¯s just bad timing and since I can¡¯t wait anymore, I¡¯m having to incur major forex losses,¡± Khurana said TOI, while getting her money exchanged.
afp
She isn't the only one, Chennai based journalist Preeti Zachariah who recently took a break to pursue her master program at an Ivy League college in the US too is worried for her expenses as now she would get the lesser amount of money against the rupee for her expense.
afp
¡°My overall fee and expenses have gone up by around 10 per cent from what I anticipated when I opted to study. While I've been lucky enough to have gotten a generous scholarship, housing and living expenses have been adding up considerably. Really hope that it stabilises soon,¡± Zachariah told TOI from New York.
