Rupee in sharp recovery in 2019
Following double digit depreciation a year ago, the Sri Lankan rupee (LKR) appreciated against the US dollar in 2019, outperforming several Asian currencies including the Pakistani rupee, Vietnamese dong, and Indian rupee.
The Sri Lankan rupee appreciated by 0.66% compared to a dramatic depreciation of over 17% a year ago. Research carried out by The Sunday Morning Business on currency depreciation in six other regional economies revealed that in 2019, three of those currencies appreciated while the rest depreciated.
The other currencies taken into account for the purposes of comparison were the Indian rupee, Bangladeshi taka, Pakistani rupee, Vietnamese dong, Malaysian ringgit, and Thai baht.
The Indian rupee during the period from 4 January to 31 December 2019, appreciated by 0.48%, which was less than the LKR appreciation. Meanwhile the Pakistan rupee, during the period from 1 January to 31 December 2019, recorded a massive depreciation of 11.44%, according to the data from the State Bank of Pakistan.
The Vietnamese dong recorded a minor depreciation with its currency being depreciated by 0.08% in 2019, while Malaysia ringgit and Thailand baht appreciated respectively by 1.08% and 6.89%, outperforming the LKR appreciation. The Bangladesh taka recorded a 1.19% depreciation during this period.
Measured by the Dollar Index movements the dollar strengthened by 0.25% in 2019. The Dollar Index is an indicator of the value of the US dollar in relation to a basket of foreign currencies which comprises the euro (EUR), Japanese yen (JPY), pound sterling (GBP), Canadian dollar (CAD), Swedish krona (SEK), and Swiss franc (CHF).