January 1, 2018
The rupee (INR) started New Year 2018 on a strong note, with the currency exchange rate edging up to a five-month high of 63.65 against the US dollar (USD).
This is the highest value of the rupee against the US dollar since August 2017. The rupee (INR) had appreciated by 21 paise to end at a fresh four-month high of 63.87 against the US dollar (USD) on Friday. At 12:11 pm, the rupee was trading at 63.66 against the US dollar.
5 things to know about INR's (rupee) surge against USD (US dollar) today:
1) Traders said that increased selling of the American currency by banks and exporters lifted the rupee against the dollar.
2) The rupee also got support from domestic equity markets. Though the benchmark indices BSE Sensex and NSE Nifty were trading flat, the broader markets were firm. The BSE midcap index was up 0.75 per cent while the smallcap index rose nearly 1 per cent.
3) The rupee had risen almost 6 per cent against the US dollar in 2017, buoyed by strong inflows into Indian capital markets. Besides that the dollar had also wilted against other global currencies.
4) The wilting dollar has also lifted commodities priced in the currency, which have also benefited from a synchronized pick-up in global trade and surprisingly strong demand from China.
5) In first quarter of 2018, rupee could be mildly positive against US dollar up to 63.00 levels, says forex advisory firm IFA Global. "But on back of global growth and stronger data, US Fed along with other central banks could move towards rate hike and balance sheet trimming. This can be seen capping the rupee's gains above 62.50 levels in remaining quarters or till end of 2018. Overall, view remains positive for Rupee in 2018," the forex advisory firm added.
Courtesy/Source: PTI / NDTV