INR Hits Eight Month High On Stronger Fundamentals

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.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza