In the financial year 2020-21, the Indian Rupee was one of the better performing Asian currencies rising over 3.53 percent.
The outlook on Philippine peso does not seem positive as investors turn bearish for the first time since April 2020.
In spite of major gains in US yields, the dollar has reached it’s lifetime low this week.
Moreover, investors are in search of high-growth economies that will benefit from a pick-up in global trade.
This is post the vaccination efforts improvising the nation’s risk taking capacity.
However, bullish bets have climbed up on most Asian currencies like Chinese Yuan, the Indonesian Rupiah, Singapore’s Dollar and the Malaysian Ringgit.
The Indian Rupee witnessed it’s all time high surging almost 1% in February on huge foreign fund inflows into equities.
This is due to the Indian economy aiming to rebound sharply amid a sustained drop in COVID-19 cases.
According to Reuterspoll, India’s economy will hit the benchmark yielding growth in the last quarter.
Meanwhile, HSBC analyses that the country will build on the momentum to record growth in double-digits in fiscal 2021.
Reserve Bank of India is likely to scale up the reverse repo rate twice by 20 basis points this year.
It is on the basis of soaring inflation rates along with better growth prospects for the country’s economy.
RBI is of the view that inflation will rein in with high foreign exchange reserves to keep the rupee stable.
Currently, China’s economic outperformance has led to Yuan rising as a mighty rival to the dollar.
Further, the central bank’s strong grip on the currency has kept investors cautious.
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