Asian Currency

Rupee Holds On To Best-Asian-Currency Tag So Far In 2024 Despite Recent Dip

While concerns regarding Iran-Israel tensions have eased, a strong dollar continues to weigh on emerging-market currencies, including the rupee, according to CareEdge. “FPIs have so far pulled out of Indian markets in April. Nevertheless, in the year so far, rupee remains a top performer compared to some EM and Asian peers, likely supported by RBI interventions,” it said.

CareEdge expects the rupee to trade within the range of 83.00 to 83.50 in the near term, with a note of caution regarding potential risks stemming from geopolitical tensions.

It projects a marginal appreciation of the rupee in the current fiscal with a range of 82 to 82.50. This outlook is underpinned by India’s robust fundamentals, including healthy economic growth hovering around 7%, a comfortable current account deficit of approximately 1% of the gross domestic product and an anticipated surge in foreign-portfolio-investment inflows, CareEdge said.

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