Rupee at 2-year high of 63.60: Why did it surge and what's next?

The Rupee finally broke through the key psychological level of 64 after spending a good four months in the 64-65 range. The rupee made a low of 63.60 on Wednesday, a level not seen since July 2015. Despite a muted reaction in the equity and bond markets the rupee strengthened as the market was eyeing 64 as the key support level and huge stops were triggered as that level broke. Rupee has strengthened 6.21% against the greenback, year till date as FPIs have been pouring in money into Indian equity and debt markets in search of yields. Low inflation in