Modi Effect: Rupee Best Performing Asia-Pacific Currency In 2014
By PTI
The highest-ever tally in the Lok Sabha elections has helped BJP secure a majority on its own, thus raising hopes of big-bang reforms to revive the economy.
In Asia-Pacific, the rupee's gains versus the US dollar are followed by the Rupiah (Indonesia) that has appreciated 4.6 per cent, New Zealand dollar's 3.75 per cent rise and Australian currency's 3.5 per cent rise.
The Yen (Japan), the Won (South Korea) and the Ringgit (Malaysia) have gained between 2-3 per cent in this calendar year so far.
Philippines Peso has appreciated 1.6 per cent against the US dollar, followed by 0.5 per cent uptick in Thailand's Baht and Singaporean dollar. While the Hong Kong dollar is almost unchanged since 2014 started, the Taiwan dollar and Chinese Yuan have lost value.
Some analysts, however, feel that the Indian rupee faces risk of some depreciation after its recent strong show.
"While Indian rupee is expected to depreciate slightly against the $from current levels (we pencil dollar/rupee to hover around 60 for this fiscal year), we expect it to gain against Yen and Swiss Franc," said a report from ICICI Bank Treasury Research Group.
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