The rupee's surge this week to 11-
month high levels has
made it the best performing currency against the US dollar, so far this year,
in the Asia-Pacific region. This was attributed to capital inflows, and
euphoria around the incoming government. With a gain of about 5.3 per cent
since the start of 2014, the rupee has sprinted ahead of its other Asia-Pacific
peers, including Indonesia's rupiah and New Zealand dollar in terms of
year-to-date rise.
The rupee, which closed at 58.52 levels on the last
trading day on Friday, has incidentally seen a lion's share of 5.3 per cent
gain in the past one month. The Indian currency stood at 61.8 level at the
start of this year, and has recorded a gain of 327 paise in less than six
months. This marks a major turnaround since August last year when rupee touched
its life-time low of 68.80.
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