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It's not economic strength but foreign inflows that's pushing the rupee

Foreign investors in March and April have turned unusually bullish on India

rupee, forex, Rs
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Photo: Shutterstock

Anup Roy Mumbai
The recent strength in Indian rupee, about 5.5 per cent up against the dollar since January, could be a reflection of the growth in Indian economy, said Nirmala Sitharaman, minister of state (independent charge) for commerce and industry on Sunday. 

But it is important to gauge then if rupee’s strength is on a standalone basis -- or its trade partners and competitors, more specifically its Asian peers have also strengthened or not. Turns out that rupee is not the only one to strengthen rapidly against the dollar in the period. 

In fact, the rupee is not the highest gaining currency

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