Rupee hits one-year high of 65.4: Where is it headed?

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

Rupee hit a one-year high of of 65.4 against the USD, up 29 paise over its previous close. With a rally of over 3.4% in calendar year 2017, the rupee is the third best performing currency in Asia against the USD (sixth best among key world currencies) , behind South Korean Won and the Taiwan Dollar that have appreciated 5.44% and 4.95%, respectively.

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