Skip to main content

Rupee ends 2017 on bullish note, hits 4 mth peak of 63.87

By
Rupee ends 2017 on bullish note, hits 4 mth peak of 63.87
Pushing the momentum through year end, the rupee on Friday capped off a fabulous 2017 at a fresh four month high of 63.87a dollar, rising by a good 21 paise amid bearish dollar sentiment.This is the highest closing for the home currency since September 8 this year.
On year over year basis, the rupee appreciated by a whopping 4.05 paise, or 5.96 per cent, as compared to 2016 end level of 67.92.The year 2017 gave a massive edge to the Indian currency when compared to its counterparts in other Asian and emerging economies, after along six year hiatus
Frantic dollar unwinding by banks and exporters along with bullish local equities, further impending bout of strength.Besides, the prevailing bearish sentiment for the American unit proved to be a catalyst for the Indian rupee.Also helped by dynamic capital inflows, the year undoubtedly marked an incredible come back and a new beginning for the home currency even as the country witnessed a dramatic and eventual transition to a cashless economy.
The performance of Asia´s best currency has been largely impressive this year as it managed to swim against cyclical slowdown and global currency volatility against the back drop of US political headlines, echoing its robust resilience
This performance has been founded on a combination of factors such as highly bullish macroeconomic fundamentals and easing monetary policy dynamics, as well as by the strength of global economy.At the Interbank Foreign Exchange (forex) market on Friday, the rupee opened modestly higher at 64.05 from Thursday´s close of 64.08.
The Business Standard, New Delhi, 30th December 2017

Comments

Post a Comment

Popular posts from this blog

Household debt up, but India still lags emerging-market economies: RBI

By
  Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...
Post a Comment
Read more

External spillovers likely to hit India's financial system: RBI report

By
  While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...
Post a Comment
Read more

Healthy balance sheets augur well for economy: RBI Governor Sanjay Malhotra

By
  Large tariffs by the United States administration and elevated geopolitical risk have increased near-term global financial stability risks, and along with weather events pose downside risks to domestic growth, Reserve Bank of India(RBI) Governor Sanjay Malhotra said in the foreword to the Financial Stability Report released today.Noting that domestic growth momentum is buoyed by strong domestic drivers, sound macroeconomic fundamentals and prudent policies, Malhotra said: “External spillovers and weather-related events could pose downside risks to growth.”On the other hand, he said the outlook for inflation is benign, and there is greater confidence in the durable alignment of inflation with the Reserve Bank’s target.Commenting that the structural shifts reshaping the global economy are making policy intervention challenging, the Governor emphasised the need for central banks and financial sector regulators to remain vigilant, prudent and agile in safeguarding their economies and...
Post a Comment
Read more