Indian rupee is Asia’s top performer in last 3 mths

Due to the influx of foreign currency, the Indian Rupee has emerged as the top performing currency in Asia over the last 3 months. The election of Mr. Modi as the nation’s Prime Minister is likely to give a further impetus to this rise. In light of these developments, the Reserve Bank of India (RBI) may have to rein in the currency, as it would weaken export competitiveness. Already, the RBI purchased US$ 9.4 billion in US dollars in March 2019, the most since January 2015. It has also procured US$ 10 billion via two swap auctions since then. However, too much intervention could also put India back in the limelight vis-à-vis the US Treasury Department, which removed it from the currency manipulation watch list last week.