From worst to best, journey of the Rupee in 2019
New Delhi, Mar 20: After sliding incessantly for much of the year, the Indian rupee has begun 2019 on a strong footing note. On March 18, the currency closed at a seven-month high of 68.53 to the US dollar, taking its net gain this calendar year to 1.8%, compared with a depreciation of 8.46% in 2018.
From being Asia's worst-performing currency last year, it has now became the best-performing among emerging markets this year.
However, according to Quartz, the rupee may continue to appreciate but it is unlikely to sustain for long.
For most of the year, oil had been on the boil and this had been a major pain point for the rupee. This is not surprising, since around 80% of India's oil demand is met by imports, paid for in dollars.
Another factor has been the dollar gaining strength and, consequently, eroding the value of emerging market currencies, including the rupee. As a result, overseas investors were pulling out of India, further denting the currency.
Considering that India is headed for general elections in 2019, markets are expected to remain choppy.