Indian rupee surges on hope of political stability
Published on Mar 25, 2014 3:37 PM
MUMBAI (AFP) - India's currency hit its strongest level in 2014 on Tuesday as hopes grew that a stable and business-friendly government would soon be elected, prompting foreign money to flow into markets.
The currency has gained more than two per cent since the start of the year to reach 60.51 rupees (S$1.26) against the dollar, a position last seen in mid-August last year.
The rupee later that month sank to a record low of 68.85 amid a fiscal deficit crisis and waning investor confidence as the government struggled to boost growth in the face of global economic turmoil.
But a flurry of steps from the government to curtail its expenses, initiate reforms and encourage investments, while clamping down on unproductive imports like gold, have helped restore confidence in India, analysts say.
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