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Video : Rupee hits all-time high against dollar in a year

On Thursday, the rupee opened at a one-year high of 65.4 against the USD

Puneet Wadhwa  |  New Delhi 

is trading above its one-year high of 65.4 against the US The recent appreciation in the rupee, analysts say, has mostly been fuelled by the gush of liquidity into the equity markets by foreign institutional investors (FIIs) in the hope of accelerated pace of reforms post Narendra Modi–led Bharatiya Janata Party’s (BJP’s) landslide victory in assembly polls in the key state of Uttar Pradesh.
 

Video: Vijdan Saleem

 
Year-till-date (March 16), foreign institutional investors have pumped in around Rs 23,007 crore in the Indian equity markets.“The turning point for the has been the recent assembly elections. The was expected to depreciate against the USD. If you look at the fundamentals, oil prices have slipped to $50/barrel levels. That apart, the FII flows have also started to increase. Thirdly, there is some speculative element also at play. Given this, the is expected to strengthen. This is one reason that the RBI has approached the banks to check the rupee’s appreciation. Though the recent trade data is a statistical mirage, it can add to the rupee’s strength,” says Madan Sabnavis, chief economist, CARE Ratings.
 
 
 

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Video : Rupee hits all-time high against dollar in a year

On Thursday, the rupee opened at a one-year high of 65.4 against the USD

On Thursday, the rupee opened at a one-year high of 65.4 against the USD
is trading above its one-year high of 65.4 against the US The recent appreciation in the rupee, analysts say, has mostly been fuelled by the gush of liquidity into the equity markets by foreign institutional investors (FIIs) in the hope of accelerated pace of reforms post Narendra Modi–led Bharatiya Janata Party’s (BJP’s) landslide victory in assembly polls in the key state of Uttar Pradesh.
 

Video: Vijdan Saleem
 
Year-till-date (March 16), foreign institutional investors have pumped in around Rs 23,007 crore in the Indian equity markets.“The turning point for the has been the recent assembly elections. The was expected to depreciate against the USD. If you look at the fundamentals, oil prices have slipped to $50/barrel levels. That apart, the FII flows have also started to increase. Thirdly, there is some speculative element also at play. Given this, the is expected to strengthen. This is one reason that the RBI has approached the banks to check the rupee’s appreciation. Though the recent trade data is a statistical mirage, it can add to the rupee’s strength,” says Madan Sabnavis, chief economist, CARE Ratings.
 
 
 
image
Business Standard
177 22

Video : Rupee hits all-time high against dollar in a year

On Thursday, the rupee opened at a one-year high of 65.4 against the USD

is trading above its one-year high of 65.4 against the US The recent appreciation in the rupee, analysts say, has mostly been fuelled by the gush of liquidity into the equity markets by foreign institutional investors (FIIs) in the hope of accelerated pace of reforms post Narendra Modi–led Bharatiya Janata Party’s (BJP’s) landslide victory in assembly polls in the key state of Uttar Pradesh.
 

Video: Vijdan Saleem
 
Year-till-date (March 16), foreign institutional investors have pumped in around Rs 23,007 crore in the Indian equity markets.“The turning point for the has been the recent assembly elections. The was expected to depreciate against the USD. If you look at the fundamentals, oil prices have slipped to $50/barrel levels. That apart, the FII flows have also started to increase. Thirdly, there is some speculative element also at play. Given this, the is expected to strengthen. This is one reason that the RBI has approached the banks to check the rupee’s appreciation. Though the recent trade data is a statistical mirage, it can add to the rupee’s strength,” says Madan Sabnavis, chief economist, CARE Ratings.
 
 
 

image
Business Standard
177 22