The Indian rupee has become Asia’s worst-performing currency, as the rapid depreciation has resulted in foreign investors exiting the Indian stock market. The INR is already down by 2.2 percent against the USD just in this quarter, which has triggered foreign investors to pull out $4 billion from India’s capital market, reported Bloomberg. This is the highest among countries where data is available.
Meanwhile, Twitteratis brutally trolled Modi after Indian rupee was declared the worst performing currency even as global funds pulled $4billion of capital out of India’s stock market.
“Instead of campaigning for state elections, PM Modi should focus on undoing the tremendous damage he has done to India’s economy,” Dr. Shama Mohammed wrote.
Similarly, another user wrote, “Don’t worry, we will build temples. Economy, who cares. Healthcare, who cares. Society, who cares. Welfare, who cares. Temple should be made and production movie of its inauguration should be televised.”
Below are a few hilarious tweets:
https://twitter.com/Dr_Uberhuman/status/1473293439575855104?s=20
The #Rupee has emerged as Asia's worst performing currency, even as global funds pulled $4 billion of capital out of India's stock market. Instead of campaigning for state elections, PM Modi should focus on undoing the tremendous damage he has done to India's economy!
— Dr. Shama Mohamed (@drshamamohd) December 21, 2021
Told my Bhakt Friend that #Rupee has become Asia's worst performing currency.
He said: Who use currency these days. Use Google Pay.
— Hitendra Pithadiya 🇮🇳 (@HitenPithadiya) December 21, 2021
The #Rupee is now Asia's worst performing currency!
Over 8 Lakh Indians gave up their citizenship!
Global funds pulled $4 billion out of Indian stock market!
We fell on indices of democracy,press freedom,poverty,hunger!
But who cares?! Mandir toh ban gaya na!#ThankYouModiJi
— Leher Sethi (@LeherSethi) December 21, 2021
https://twitter.com/Anandraaj04/status/1473263805186469888?s=20
The art and the artist. #Rupee @AamAadmiParty @ArvindKejriwal @PreetiSMenon @AAPMaharashtra @AAPMumbai pic.twitter.com/ogUvtrLQeT
— AAP Raigad (@AAPRaigad) December 21, 2021
Issues like higher than reasonable valuations, a widening trade deficit, and the Reserve Bank of India’s divergence with the Federal Reserve over interest rates also gave an impetus for foreign investors to exit Indian equities.
“The monetary policy divergence and widening current account gap have set depreciation in the rupee in the near term,” B. Prasanna, Head of Global Markets, Sales, Trading and Research at ICICI Bank, told Bloomberg.
While a weaker rupee means that exports from India are much more attractive, the rise in the cost of imported goods can quickly contribute to imported inflation. For India, which is still a net importer of energy, this can quickly cause a spiralling rise in prices.
However, December 21, the rupee surged by 31 paise to close at 75.59 (provisional) against the US dollar, as positive domestic equities and a weak American currency in the overseas markets boosted investor sentiment.