The Rupee hit a fresh two-month high of 64.90 against the dollar in morning trade on Friday after the minutes of the Fed's September 16-17 policy review showed that US policymakers were concerned about the slowing world economy.
Most Asian currencies have been climbed against the US dollar, as traders bet the US Federal Reserve might not raise interest rates in calendar 2015.
"Clearly, being part of the emerging markets group, a bounce in Asian market currencies has helped us ( Indian rupee) a lot, but there are some fundamentals which are unique to India, which one cannot ignored," says K Harihar of FirstRand Bank.
There are a lot of factors which are in favour of the Indian currency. Apart from foreign flows, which turned positive in October, analysts are attributing the strength in the rupee to the government decision to raise foreign investors limit in government bonds.
The domestic currency has been Asia's best-performer since the end of August, down just a little over 3 per cent against the dollar. ABN Amro Bank, the top forecaster in Bloomberg's quarterly rankings, sees the currency maintaining that position on the back of higher inflows.
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"Clearly, being part of the emerging markets group, a bounce in Asian market currencies has helped us ( Indian rupee) a lot, but there are some fundamentals which are unique to India, which one cannot ignored," says K Harihar of FirstRand Bank.
There are a lot of factors which are in favour of the Indian currency. Apart from foreign flows, which turned positive in October, analysts are attributing the strength in the rupee to the government decision to raise foreign investors limit in government bonds.
The domestic currency has been Asia's best-performer since the end of August, down just a little over 3 per cent against the dollar. ABN Amro Bank, the top forecaster in Bloomberg's quarterly rankings, sees the currency maintaining that position on the back of higher inflows.
Read More – i forex Tips
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