Rupee ends 2017 on bullish note, hits 4 mth peak of 63.87
Pushing the momentum through year end, the rupee on Friday capped off a fabulous 2017 at a fresh four month high of 63.87a dollar, rising by a good 21 paise amid bearish dollar sentiment.This is the highest closing for the home currency since September 8 this year.
On year over year basis, the rupee appreciated by a whopping 4.05 paise, or 5.96 per cent, as compared to 2016 end level of 67.92.The year 2017 gave a massive edge to the Indian currency when compared to its counterparts in other Asian and emerging economies, after along six year hiatus
Frantic dollar unwinding by banks and exporters along with bullish local equities, further impending bout of strength.Besides, the prevailing bearish sentiment for the American unit proved to be a catalyst for the Indian rupee.Also helped by dynamic capital inflows, the year undoubtedly marked an incredible come back and a new beginning for the home currency even as the country witnessed a dramatic and eventual transition to a cashless economy.
The performance of Asia´s best currency has been largely impressive this year as it managed to swim against cyclical slowdown and global currency volatility against the back drop of US political headlines, echoing its robust resilience
This performance has been founded on a combination of factors such as highly bullish macroeconomic fundamentals and easing monetary policy dynamics, as well as by the strength of global economy.At the Interbank Foreign Exchange (forex) market on Friday, the rupee opened modestly higher at 64.05 from Thursday´s close of 64.08.
The Business Standard, New Delhi, 30th December 2017