RUPEE ENDS 2017 ON BULLISH NOTE, HITS 4-MTH PEAK OF 63.87

Pushing the momentum through year- end, the rupee on Friday capped off a fabulous 2017 at a fresh four-month high of 63.87 a dollar, rising by a good 21 paise amid bearish dollar sentiment.

This is the highest closing for the home currency since September 8 this year.

On year-over-year basis, the rupee appreciated by a whopping 405 paise, or 5.96 per cent, as compared to 2016-end level of 67.92.

The year 2017 gave a massive edge to the Indian currency when compared to its counterparts in other Asian and emerging economies, after a long six-year hiatus. Frantic dollar unwinding by banks and exporters along with bullish local equities, further impending bout of strength. Besides, the prevailing bearish sentiment for the American unit proved to be a catalyst for the Indian rupee.

Also helped by dynamic capital inflows, the year undoubtedly marked an incredible comeback and a new beginning for the home currency even as the country witnessed a dramatic and eventual transition to a cash-less economy.

The performance of Asia's best currency has been largely impressive this year as it managed to swim against cyclical slowdown and global currency volatility against the backdrop of US political headlines, echoing its robust resilience.

This performance has been founded on a combination of factors such as highly bullish macroeconomic fundamentals and easing monetary policy dynamics, as well as by the strength of global economy. At the Interbank Foreign Exchange (forex) market on Friday, the rupee opened modestly higher at 64.05 from Thursday's close of 64.08.