The Indian rupee, which hit an eight-month high this week, has staged an impressive turnaround over the past seven months, but analysts say it may struggle to sustain its move below the key psychological level of 60.
The currency has strengthened around 12.5 percent against the U.S. dollar since hitting an all-time low of 68.85 in August 2013 during the peak of the emerging markets crisis.
The dollar-rupee pair touched 59.99 on Friday before edging back above 60. It last traded at 60.10.
A combination of factors have fueled the currency’s appreciation – including an improvement in economic fundamentals such as the current account, together with central bank governor Raghuram Rajan’s proactive approach to monetary policy.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.