Moneycontrol

Budget 2023Budget 2023
Upcoming Event : LeapToUnicorn - mentoring, networking and fundraising for startups. Register now
you are here: HomeNewsBusiness

How have currencies responded to inflation?

There have been serious dips and dramatic rescues in the emerging economies.

April 20, 2022 / 08:38 AM IST
Russia’s ruble and Brazil’s real have strengthened considerably, despite the inflationary trend. (Photo by cottonbro/Pexels)

Russia’s ruble and Brazil’s real have strengthened considerably, despite the inflationary trend. (Photo by cottonbro/Pexels)

In an inflationary environment, the strength of domestic currencies and of monetary levers are tested. While the ones in developed countries have largely stayed stable, there have been dips and climbs in the emerging economies.

In the developed world, Japan’s yen seems to have reacted most sensitively. It has been weakening rapidly since early March and because there is a nagging fear in the market that the Bank of Japan may delay raising interest rates. The country has a history of keeping its currency weak to let its export-led economy flourish.

HowCurrencies moved with Inflation_DevelopingEco Graphics: Upnesh Raval; Data compiled by Ritesh Presswala