The Indian rupee has logged over 4 percent gain so far this fiscal, as sustained foreign fund inflows and the RBI's deft policy manoeuvring ensured a strong year for the Indian currency despite headwinds on the economic front, according to experts.
The local unit is likely to average around 73.50-74 in the financial year 2021-22, as despite a vaccine, the coronavirus hysteria still persists and may continue to grapple the foreign exchange market, experts said.
The financial year 2020-21 has been a roller-coaster ride for the rupee due to COVID-19. The pandemic-induced massive sell-off in the equity market led the rupee breach record low of 76.90.
However, the optimism over vaccines, easing of lockdown restrictions, infusion of stimulus by governments and central banks all over the world enthused investors with a general sense of optimism, and the rupee vaulted back to the 72 zone.