How currencies worldover have performed since the Trump victory

The rupee has lost 2.45% since November 8, when Republican Donald Trump was declared winner in the US presidential elections. Most emerging market (EM) currencies have lost value against the dollar since the US election results.

But the Indian rupee has been one of the better performers among the emerging market currencies during the period. An analysis of a basket of fourteen emerging market currencies shows that the Indian rupee was the fifth best in the pool.

It was the third best after China and Russia among the BRICS economies. This trend is largely an outcome of the perception that US infl ation may rise because of which yields on benchmark US treasury bonds have started rising.



This has resulted in a dollar pullout from several emerging markets by foreign investors.

The move to do away with Rs 500 and Rs 1,000 bills as legal tenders by itself seems to have a limited impact on the level of the local currency.