The New Year 2018 began with rupee surging to a high of 63.44 against the US dollar. Since July 2015, this has been the highest value of the rupee against the US dollar. On Monday, the rupee surged to 63.68 against dollar meaning a gain of 19 paise against its US counterpart. Not just in India but globally as well, the US dollar has been facing a dip against major currencies.
The US dollar today faced near a three-month low against major currencies of the world. The dollar’s index was 92.162 against six major currencies. On Friday, it fell down to 92.080, which was the weakest range since September 22.
As per the traders, as banks and exporters are selling the American currency more, rupee is getting a big lift against the dollar.
In entire 2017, the US dollar index declined more than 9.8%, which was the worst performance of the greenback since 2003. As other countries’ central banks adopted a stringent monetary policy, USD came back in 2017, because economic growth gained pace outside the United States, reducing the rift between the Federal Reserve and others.
In 2017, the rupee saw a surge of almost 6 percent against the US dollar due to strong inflows into the Indian capital markets. Meanwhile, the dollar had also dropped against other global currencies.
As per a Forex advisory firm IFA GlobalIn, rupee could be a bit positive against US dollar and may surge to 63.00 levels in the first quarter of 2018. It even added that due to strong global growth, US Fed could aim at rate hike and balance sheet trimming. This would mean restricting the rupee’s gains above 62.50 till the end of 2018. Overall, everything is expected to move in a positive direction for rupee in 2018.