New Delhi, April 5 : The Indian currency (INR) was the most stable among major currencies during the past three years and this reflects sound economic fundamentals of the Indian economy, says the Reserve Bank of India.

The Indian rupee (INR) has remained largely range-bound as compared to both its emerging market peers and a few advanced economies during 2023-24.

The depreciation of Indian rupee at 1.4 per cent against the US dollar in 2023-24 was lower as compared to emerging market peers like Chinese yuan, Thailand baht, Indonesian rupiah, Vietnamese dong and Malaysian ringgit and a few advanced economy currencies like Japanese yen, Korean won and New Zealand dollar, RBI Governor Shaktikanta Das said announcing the Monetary Policy.

The INR was the most stable among major currencies during this period. As compared to the previous three years, the INR exhibited the lowest volatility in 2023-24. The relative stability of the INR reflects India’s sound macroeconomic fundamentals, financial stability and improvements in the external position, he said.

The coefficients of variation (CV) of the INR were 1.6 per cent, 1.2 per cent, 2.7 per cent, and 0.6 per cent for the years 2020-21, 2021-22, 2022-23 and 2023-24, respectively.

During 2022-23 and 2023-24, the INR was one of the least volatile in terms of CV among various peer EME currencies including the Chinese yuan, the Thailand baht, Malaysian ringgit and Brazilian real.

UNI