The Japanese yen and India’s rupee on Monday slid against the US dollar ahead of an expected move by the US to raise interest rates again.
With $1 dollar worth 135.19 yen, Japan’s currency on Monday morning was at its lowest against the dollar in 24 years, since the Asian currency crisis of 1998.
The rupee fell to 78.2825 for 1$, another all-time low, with the currency’s value in uncharted territory against the greenback for several months now.
This comes amid rising prices globally, as well as capital outflows in emerging markets as investors turn risk-averse.
Several currencies have been weakened in recent months as the US Federal Reserve moves toward tighter policies to tackle soaring inflation triggered by Russia’s invasion of Ukraine.
The Bank of Japan, however, has taken a different approach to the Fed, sticking to its long-standing monetary easing program in hopes that it will stabilize growth.
Meanwhile, India’s Reserve Bank (RBI) hiked borrowing costs by 50 basis points last week. The out-of-cycle 0.4% rate rise in May was the second in recent months. The Indian central bank has also sought to stabilize the currency by selling off foreign currency.