Rupee is trading above its one-year high of 65.4 against the US dollar. 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 rupee has been the recent assembly elections. The
