Indian Rupee Weakens Against Dollar and Asian Currencies, But Stronger Than Pakistan's PKR Over Last Decade The Indian Rupee (INR) has faced pressure against the US Dollar (USD) and other Asian currencies in recent months, with the USD-INR exchange rate hitting levels around 96. However, over the past decade, the Rupee has shown significant strength against the Pakistani Rupee (PKR), defying short-term volatility. This divergence highlights the complex dynamics of global markets and regional economic conditions. From 2016 to 2026, the INR has appreciated against the PKR, with the exchange rate rising from 1 INR = 1.56 PKR in 2016 to 3.36 PKR in 2023-2024. This reflects India’s stronger economic fundamentals compared to Pakistan, which has struggled with inflation, debt, and political instability. Despite recent declines, the INR remains historically stronger against PKR, even as both currencies face challenges from global factors. The recent weakening of the INR against the USD is driven by several factors. Rising oil prices have increased India’s import costs, leading to higher foreign exchange outflows. Additionally, global geopolitical tensions, particularly between the US and Iran, have created uncertainty in financial markets, prompting investors to seek safety in the USD. The Reserve Bank of India (RBI) has also faced pressure to manage capital outflows, with foreign portfolio investors (FPIs) withdrawing funds amid economic concerns. In the broader Asian context, the INR has underperformed compared to currencies like the Chinese Yuan (CNY), Malaysian Ringgit (MYR), and Singapore Dollar (SGD). These currencies have gained strength due to robust economic growth, fiscal discipline, and stable monetary policies.#pakistan #us_dollar #indian_rupee #reserve_bank_of_india #pakistan_rupee
