​​​
  1. Rupee hits a fresh two year high of 63.6

Rupee hits a fresh two year high of 63.6

The Rupee hitting a fresh high of 63.6 against the US Dollar assumes significance as it had been trading in the 64-65 range for the last four months.

By: | Updated: August 3, 2017 1:01 PM
Reserve Bank of India, MPC, ASEAN, Standard Chartered Bank, CPI inflation, PNB Gilts, monetary policy, repo rate The Indian Rupee hit a fresh two year high of Rs 63.6 against USD on Thursday, it’s best since August 2015. (Image: Reuters)

The Indian Rupee hit a fresh two year high of Rs 63.6 against USD on Thursday, it’s best since August 2015. Yesterday, the INR had closed at RS 63.7 against the dollar. The rupee is up by nearly 6% in the year, and emerged as one of the best performing currencies in the world. This new high assumes significance, as the INR had been trading in the 64-65 range in the last four months. Foreign investors have invested a staggering $4 billion into the Indian capital market in July, as they see “better prospects” of economic growth as compared to other emerging markets. While on the other side, low inflation in the United States and a lack of anticipated fiscal reforms has caused the US yields to fall. Consequently, the US Dollar has underperformed. Ananth Narayan, head, financial markets, Standard Chartered Bank explained, “The fundamentals for India have improved and, on the other hand, the dollar has weakened. All this has made India one of the-best-performing currencies in the world.”

The rupee moving from strength to strength will keep imported inflation under check, however, it may adversely impact the competitiveness of exports. The timely 25 basis points rate cut announced by RBI yesterday too played a role in the rupee achieving this feat. Earlier, on Tuesday, the Rupee had rallied more than 10 paise on hopes of a rate cut. Yesterday, the central bank had revised the key interest rate to 6%, down by 0.25%. The economic affairs secretary, Subhash Chandra Garg said, “We welcome the 25 bps cut in the Repo Rate as an important step necessary to converge toward the appropriate real monetary conditions for sustained growth consistent with India’s potential and for stable, moderate inflation”.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

  1. S
    Sandra Kalniete
    Aug 4, 2017 at 1:41 am
    Hello everyone, I am Sandra Kalniete. I did not trust any internet loan lender not until I was introduced to Mr James Peterson, he approved and credited my loan just about a week ago after I agreed with the company terms and condition. Now the loan purpose is being carried out. If you are 100 sure to pay back the loan and ready to apply message Mr James Peterson World Loans Inc on ( petersonworldloans outlook ) and you will be glad you did. Thanks.
    Reply
    1. Suresh Deman
      Aug 3, 2017 at 1:48 pm
      A nearly 6 up in the Rupee exchange rate to a $ trading at Rs 64-65 range in the last four months attracting foreign investors to invest a staggering $4 billion into the Indian capital market in July, as they see “better prospects” of economic growth as compared to other emerging markets. However, given the very low growth in Industrial and manufacturing sector and a low growth in exports one wonders how a high Rupees is going to help the Indian economy. US Dollar's underperforms is temporary $ still being the strong currency. All this has made India one of the-best-performing currencies in the world, but only in the short-run. In any event, a major part of the growth in GDP has come from enormous growth in the speculative sector (financial) which is not only jobless but not a real economy. India is heading towards a Casino economy is a very dangerous trend.
      Reply

      Go to Top