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Rupee among best performing Asian currencies

Rupee is one of the best performing Asian currencies in Asia in the current fiscal notwithstanding global uncertainties

Policy Pulse
Publish Date: Mar 25 2016 1:45PM | Updated Date: Mar 25 2016 1:45PM

Rupee among best performing Asian currencies
Rupee is one of the best performing Asian currencies in Asia in the current fiscal notwithstanding global uncertainties.
 
According to a report that appeared in  ‘The Economic Times’, it has posted a total return of 1.04 percent in the period, ranking it fourth in Asia after Indonesian rupiah, Japanese yen and Singaporean dollar.
 
Rupee has done better than the Chinese yuan, the sixth-best currency with a 0.24% return, as per  Bloomberg data.
 
KN Dey, executive director, Mecklai Financial gave full credit to KN Dey, executive director, Mecklai Financial
 
"Speculative bets have clearly reduced this year compared to a year earlier," he was quoted as saying by the paper.
 
RBI does ot remark on market interventions, which mostly take place through state-run banks.
 
In 2013, then finance minister P Chidambaram had pegged the rupee's "right value" at 59-60 to the dollar.
 
After Rajan took over that year, RBI laid out a path of anchoring retail inflation over a period of time, all the way to 4 percent by January 2018. Till now, it's on way to meeting its targets, thus allowing an accommodative policy stance and a reduction in interest rates, which will help to lower borrowing costs and spur growth in corporate balance sheets.
 
So far in this financial year, local unit has lost 6.6 percent to the dollar versus 4.4 percent in the previous year.
 
Difference points to a relatively stable exchange rate as the rupee lost as much as 10.33 percent in FY14.