Rupee's Decline Erodes Foreign Portfolio Investors' Returns in 2024

In 2024, the Indian rupee depreciated by approximately 3% against the U.S. dollar, closing at a record low of 85.6150. 

This depreciation has adversely impacted Foreign Portfolio Investors (FPIs), diminishing their dollar-denominated returns from Indian investments. The rupee's decline is attributed to factors such as India's slowing economic growth, a widening trade deficit, and the global strength of the U.S. dollar. Despite this, the Reserve Bank of India's interventions have helped maintain the rupee's relative stability compared to other emerging market currencies.In 2024, the Indian rupee depreciated by approximately 3% against the U.S. dollar, closing at a record low of 85.6150. 

In 2024, the Indian rupee depreciated by approximately 3% against the U.S. dollar, closing at a record low of 85.6150. 

This depreciation has adversely impacted Foreign Portfolio Investors (FPIs), diminishing their dollar-denominated returns from Indian investments. The rupee's decline is attributed to factors such as India's slowing economic growth, a widening trade deficit, and the global strength of the U.S. dollar. Despite this, the Reserve Bank of India's interventions have helped maintain the rupee's relative stability compared to other emerging market currencies.

 

Source: Reuters