Indian Rupee breaches 60 mark, closes at 8-month high
March 28, 2014 - New Delhi
- For the first time in eight months, Rupee has finally breached the 60-level against US dollar, to close at an eight month high of 59.89. It touched a high of 59.68.
- The new high is backed by robust inflows from Foreign Institutional Investors (FIIs).
- Indian Rupee has been the best performer in emerging market currencies in 2014 after Indonesian rupiah
- Reserve Bank of India (RBI) has been buying dollars helping rupee gain steadily. It is taking advantage of the money pumped by Foreign Institutional Investors (FIIs).
- Rupee has reached an all-time low of 68.83 on August 28, 2013
- A stronger rupee will make imports cheaper and reduce pressure on inflation. It will also mean that overseas education and international travel will get cheaper.
- FIIs have purchased a net $3.7 billion in equities since the start of 2014 until March 27. They invested $5.8 billion in Debt markets to take advantage of the interest rate differentials.
- Meanwhile Sensex ended up 125.6 points up at 22339.97. Nifty closed at 6695.9, up 54.15 points. Both Nifty and Sensex ended at record closing highs.