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India’s rupee relatively less impacted by sell-off against other emerging market

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MUMBAI: Emerging market currencies have been slammed by the flight to the dollar in 2020 post the covid-19 pandemic, but India’s rupee has been relatively less choppy despite the large pull out from foreign portfolio investors.

The Indian rupee fell 6.35% against the dollar in 2020 as investors have been driven by the dollar’s perception as a safe-haven currency in times of global stress.

Among emerging market currencies, the South African rand that fell 23.78% and the Brazilian real which dropped 21.94% were some of the currencies that have taken a major blow in 2020 so far.

Among other worst hit currencies were the Mexican Peso, 19.50% and the Russian Ruble, 15.09%, a study done by Mint Research shows.

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