Mumbai: While the equity markets hogged most of the limelight over the past two months registering impressive gains, the Indian rupee has silently staged a smart recovery against the US dollar from its 30-month low during the same period. The rupee is now trading at 66.66 per dollar, up around three per cent from its February lows.
The rupee had hit a 30-month low of 68.60 per dollar on February 22, 2016 as investors sought the safety of the dollar following the sharp fall in commodity prices especially crude oil that renewed fears about global growth slowdown.
The devaluation of the Chinese Yuan also triggered heavy selling in emerging market currencies. However, the stabilisation of the yuan and a sudden spike in investment by FIIs amidst a recovery in global crude oil prices helped ease some of the pressure on the rupee.
“The US dollar remain-ed weak in March and April as a series of economic data from US came weak. The US Fed’s decision to maintain status quo on interest rates during its last meeting further weakened the dollar,” pointed out Abhishek Goenka, CEO of India Forex Advisors.
