BOMBAY: The rupee value depreciated sharply against the Deutsche Mark and the U.S. dollar and showed a modest fall against steeling during 1989. However, the Indian currency was barely changed against the yen.
The rupee value eroded by around 18.7 per cent against the mark, 12.62 per cent against mark 11.87 per 100.00 rupees (8.42 rupees per d. mark) at the end of last year. This was the current years rupee low against the mark.
During the same corresponding period, the dollar was quoted at 5.9205 per 100.00 rupees (16.8905 rupees per DLR) as against 6.6675 U.S. Dlrs per 100.00 rupees (14.9981 rupees per Dlr). The middle rate for sterling stood at 27.55 rupees per pound as against 26.90 rupees per pound and the Japanese unit at 841 yen per 100.00 rupees (12 paisa per yen) as against 838 yen per 100.00 rupees.
The main reason for the steep fall of the rupee against the major currencies was the rise of the dollar and the D. Mark in international exchange markets.
As sterling remains the intervening unit vis-a-vis the rupee under the basket of currencies, the buoyancy of both the US dollar and the D.Mark in the international exchange markets for the major art of the year, have very much eroded the value of the rupee.
Article extracted from this publication >> January 5, 1990