Bangalore: The much needed rise in rupee strength has finally taken place and rising above everyone’s expectation, rupee has become Asia’s best performing currency within last week. From the all time low of 68.85 against dollar, the rupee has now climbed up to touch 63.37 against dollar. It could be considered as the new RBI Governor, Rajan’s effect or some other factors like chances of Federal Reserve cutting the stimulus due to U.S. jobs data falling short of estimates are aiding its ascend, reports Business Standard.

The rupee has achieved a 0.74 percent rise from the 63.84 a dollar and recently closed at 63.37. The dollar sale by corporate entities have helped rupee to reach its three-week high value. Investments of about $1 billion have been made by Foreign Institutional investors (FIIs) in Indian Debt and equity markets.

“The positive sentiment around Rajan’s speech last week, the announcement of the a forex swap window for oil firms, as well as the FCNR (B) deposit scheme — all have contributed to strengthening of the rupee over the past few days. Additionally, the weaker-than-expected non-farm payroll data in the U.S. and cooling of the fear around Syria helped,” said Brijen Puri, Executive Director & Head of Markets, JPMorgan.

The measures proposed by Raghuram Rajan, like provision of a concessional swap window for a minimum period of 3 years for banks to convert Foreign Currency Non-Resident (B) deposits at a fixed rates of 3.5 percent.

“The measures announced by Rajan will take some time to attract flows to India. In the interim, the demand for dollars has to be met. Either FII flows will come in or RBI will have to keep intervening in the market to keep the rupee stable against the dollar. The next big thing for the rupee will be the U.S. Fed’s meeting,” said Partha Bhattacharya, Deputy CEO, Mecklai Financial.

The decision of U.S Fed to taper its stimulus programme depends on the U.S.  Federal Open Market Committee (FOMC) meeting, this is also important for deciding the fate of currencies of emerging economy.