Rupee remains resilient in early trade despite equity turmoil

Business

oi-Sunil

By Sunil Fernandes

Published: Tuesday, February 4, 2014, 9:51 [IST]

Despite equity markets sliding and breaching key support levels, the Indian rupee showed remarkable resilience and was trading with a drop of only 15 paise at 62.71.

The rupee had closed at 62.56 against the dollar in trading on Monday. The currency has shown remarkable resilience in the last few trading sessions as India's economic fundamentals continue to remain strong, particularly its current account deficit.

In fact, the current account deficit is expected to fall below 2 per cent of GDP, which is why the Indian rupee has not buckled under pressure.

Almost every emerging market currency was jolted last week from the South Africa Rand, to the Argentinian Peso, to the Turkish Lira to the Russian Rouble and the Brazilian Real.

Several countries have been defending their currencies, by hiking rates and intervening in the markets. Check currency rates here

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