“Today’s strengthening in rupee was a result of euphoria emanating from deal struck by US policymakers,” said Abhishek Goenka, CEO, India Forex Advisors. “The deficit will continue to put pressure on the rupee.”
Experts believe that the rupee is likely to appreciate in 2013.
“As the inflow of foreign funds rise on revival in investor sentiment, improvement in growth and easing crude oil prices, the rupee is likely to appreciate to 52.50 per dollar by end 2013,” said Arun Singh, senior economist, Dun & Bradstreet India.
In calender year 2012, the rupee tumbled by 189 paise, or 3.56%, from 53.10 on the December 31, 2011. This is the second consecutive year that it has declined.