In the first month of the new financial year 24 April 2023, the Indian currency ‘the rupee’ has become the second fastest-growing currency in the world. The emerging currency here means the currency which is making its identity and place in the global markets.
The Indian rupee appreciated by 0.41 percent against the US dollar in April. At the same time, the Indonesian currency ‘Rupiah’ has been in the first place. The Indonesian rupee strengthened nearly 2 percent to top the list.
Why has the rupee strengthened?
The rupee has been among the fastest-growing currencies in the last month due to strong financial activity and a fall in oil prices, as well as the continued buying of FIIs in the stock markets.
After a 10 percent reduction in the value of the rupee in 2022, the rupee is stable at 81.84 against the dollar so far in 2023. The rupee has remained stable in 2023 despite ongoing uncertainty around capital outflows.
Rupee gets support due to a fall in crude oil prices
The price of crude oil has dropped below $ 80 per barrel, resulting in a strengthening of the Indian rupee and a weakening of the US dollar.
FPI became a buyer in April
In the first three months of this year, foreign portfolio investors had sold heavily in the Indian stock markets, but after that in April, they again showed confidence in the Indian markets and bought them. In April, FPIs invested Rs 11,630 crore in Indian equity markets.
Rupee may get stronger
Let us tell you that in the coming days, you will see the Indian currency rupee in the first place in the list of emerging currencies in the world. The current account deficit of the country is decreasing, which will lead to the rupee becoming stronger and becoming the reserve currency in the coming days.