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    Rupee May Be Top Performing Currency In 2019: Analysts

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    After a lackluster year for the domestic currency rupee, the currency is expected to be the top performer in 2019. Santa rally in the currency is already visible with over 2% jump in the rupee's value early this week given the US dollar weakening on Fed policy outcome as well as declining crude oil price.

    Rupee May Be Top Performing Currency In 2019: Analysts
     

    The rupee in current market situation is likely to extend its present rally into the new year, which is posting the best quarter ever since March 2017. The rupee that went down in value by almost 10% this year has been the worst performer since 2013.

    But now even as the Fed in its December meet has raised rates and also hinted at further rate hikes in 2019, rupee's likely surge is on the cards on hopes that the US central bank may slowdown its tightening pace and crude oil will also cool down in price.

    A strategist with Nomura Holdings in a Bloomberg report said that the currency on a total return basis is expected to be the top performer. "We expect a reversal of the underperformance from prior months and a recovery amid low oil prices, a less hawkish Fed and an improving portfolio flow outlook", he said.

    Also, the liquidity being strengthened in the Asia's third-largest economy is also providing momentum to the domestic currency.

    The rupee was last quoting at 70.48 per US dollar after rate hike the US Fed down by 0.117% against yesterday's close.

    Goodreturns.in

    Story first published: Thursday, December 20, 2018, 10:54 [IST]
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