The Indian Rupee made a slight change from since two year high of 67.73 against the dollar today and closed at 64.07 per dollar on Tuesday. Rupee was one of the great performing curriencies in the world making a difference over 6% from year to date aginst US dollars. Falling current account deficit and prospects of higher economic growth and strong foreign inflows into the domestic capital markets are the main aspects to boost the Rupee.
Rupee raised additional force after the RBI cut its key lending rates by 25 basis points due to the rate cut interest rate of Indian and developed market remained significantly higher and it helped to attract the inflows into domestic capital markets around $30 billion . India’s economic growth is likely to spring up to 7.2 % this year and 7.7 % next year, aid by several modification measures announced by the government. The current account shortage has narrowed to just 0.6 % of GDP from a record 4.8 % in 2013, while foreign exchange reserves hit a record high of $389 billion as of 14th July 2017.
