24 Apr 07 Rupee at 9 year high – Best performing asian currency in year 2007
The Indian rupee touched a new nine year high on Tuesday, ahead of the RBI announcement on key rates. This surge is because investors bet on renewed capital inflows into the rapidly growing Indian economy. The Indian economy has been recieving huge foreign direct investment as well as foreign institutional investment which has led to record dollar reserves and the record rise in the value of rupee against the dollar.
This morning the Indian Rupee was trading at 41.58/59 per dollar after touching a high of 41.55 which was its highest level since May 1998. It had closed at 41.67/68 on Monday. The Indian rupee has appreciated by about 6% in the year 2007, making it the best performing Asian currency against the dollar, this year. The next best performer is the Thai baht, which has appreciated by about 3.6% against the dollar.
The surging rupee is a boon for importers and a bane for exporters. The Indian software (IT) industry in particular seems to be the worst affected.
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This article was extremely interesting, especially since I was searching for thoughts on this subject since last few days.
Thanks & Regards,
Priya
priya@ forexsoftware-free.info