Rupee likely to outperform others in the region as oil prices fall

The election outcome by the end of May is crucial for the currency

The Indian rupee has strengthened in the past few days following a fall in oil prices, even as weak Chinese data strokes fear of a global slowdown.

The rupee could end up being the best-performing currency in the region, say currency dealers as oil prices fall and tax collection bolsters the economy. In the past five trading sessions, the rupee has appreciated 1.30 per cent, the sharpest among major currencies in the region.

It was, in fact, one of the three currencies that rose against the dollar on Thursday, appreciating 0.30 per cent from its previous close of 69.56 a dollar. 

The rupee