Indian Rupees Was Expected To Fall To 70/Dollar But the Opposite Happened

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Just a few months back, many economists were predicting that the rupee could breach the 70 levels against the US dollar. 

 The dollar was soaring against other currencies too on hopes of pro-growth measures from the Trump administration to boost the US economy.

 Expectations were high that the US Federal Reserve would hike rates at a faster pace, which would also boost the US dollar. But the rupee changed course. 

So far this year is among the best performing currencies in the world, rising over 6 per cent against the US dollar. 

It closed at two-year high of 63.58 against the dollar on Friday.The rupee's rise comes in the backdrop of a surge in overseas inflows into the domestic stock and bond markets.

The International Monetary Fund (IMF) has said in its latest update that India's economic growth is likely to rebound to 7.2 per cent this year and 7.7 per cent next year, aided by several reform measures announced by the government including the GST.

Added Tushar Arora, senior economist at HDFC Bank: "Within the emerging market space, currencies with strong fundamentals could continue to gain despite stretched valuations - INR (rupee) falls in this category." 

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