New government, capital inflow make Rupee best performing Asia-Pacific currency
Strengthened by capital inflows and excitement about the new incoming government, the Rupee reached 11-month high which has made it the best performing currency in Asia-Pacific region against the US dollar so far in 2014.
It has gained 5.3% since the start of 2014 and has leapt ahead of its other Asia-Pacific peers, including Indonesia’s rupiah and New Zealand dollar, in terms of year-to-date increase.
The rupee, which was at 58.52 levels in recent days, has shown remarkable recovery since August 2013 when rupee fell to its life-time low of 68.80. Since the start of 2014 when rupee was at Rs.61.8 level per US dollar, it has recorded a gain of 327 paise in less than 6 months.