The Indian Rupee as the Best Performing Currency in Asia in 2016

Compare Money Transfer Rates

The Indian rupee whose currency symbol is INR is the official currency of the republic of India. The currency has 100 sub-divisions of 100 Paisa. However, only the 50 paisa currency still remains as legal tender as of 2016. The correct exchange rate of the Indian rupee is 1 Indian Rupee for 0.015 US Dollars. The issuance of the Indian rupee is under the control of the Reserve Bank of India through the authority of the 1934 Reserve Bank of India Act. The Indian currency is named after a piece of silver coin, which was issued by Sultan Sher Shah Suri known as the Rupiya during the 16th century, and whose use was later extended to the Mughal Empire.

Indian Rupee has been a relatively stable currency owing to the fact that India is among the developing nations with a strong and emerging economy alongside nations such as Brazil. However, in 2016, the Indian rupee has not been the best performer even though it emerged top among all Asian currencies. The rupee went down by an average margin of 0.4 percent versus the USD in 2016. In spite of the decline, the economy performed relatively well as inflation slowed down and the flow of stock investors increased. These two factors coupled with proper budgetary discipline enabled the nation’s economy to work relatively well. The slowed down inflation covered for the shortcomings in the current account deficits.

These outcomes still make the Indian rupee an attractive currency in Asia. Investing in rupees towards the end of the last quarter of 2016 was projected to earn about 2.6% til the end of 2016 based on Bloomberg report. India is just as attractive as its rupee because move investors are getting attracted to India because it is at the moment one of the fastest growing economies and its market has the 2nd highest yielding capability in major Asian markets.

The trend in the nation is even more alluring considering the fact that decade-long bonds earn 7.51% in spite of the fact that the yield has gone down by twenty-seven basic points since 26th February 2016. Notes with a ten-year maturity fetch 2.83% in China and 7.79 percent in Indonesia. The attractiveness of such investment in terms of returns has attracted many foreign investors who hold rupee-denominated corporate and government debts in form of bonds and notes. Such investment has gone up to a level of 21.1 billion rupees. The fact that the Indian government is willing to even further increase the foreign investment holding in the nation in form of government and corporate credit implies that the rupee may further increase in value and become even more attractive.

The Indian rupee is supported by a very strong and robust economy, which is the 6th largest in the globe by nominal Gross Domestic Product and third in purchasing power parity. As a newly industrialized nation, India is expected to continue having a relatively stable growth. As such, it is expected that the rupee will retain its attractiveness in the long run within the Asian region.

Company Details

Indian Rupee Best Performing Currency

Get a quick quote

Open Account with Currencies Direct

Currencies Direct are located at:
51 Moorgate,, Greater London,, , EC2 R6BH, United Kingdom

Get a Quick Quote

Newsletter Signup to CMT

Sign up to our foreign exchange newsletter to receive news updates directly by email

Compare Money Transfer will not Share your details!

Bank Exchange Rates Comparison

High St Bank Exchange Rate

All Rights Reserved: Copyright 2006 - 2018 Compare Money Transfer Limited offering FCA Regulated Suppliers - 34 New House, 67-68 Hatton Garden, London, EC1N 8JY. +44 (0) 843 357 4882