Rupee up against yen, euro; down vs US dollar: DBS

Backed by projected strong growth and inflow of investments, the Indian rupee has appreciated by 13.7 percent against the Japanese yen and 12.8 percent against the euro over the past 11 months, Singapore's DBS banking group said on Monday.

It has however declined 6.1 percent in value against the US dollar from July 2014 to June this year, as the greenback has appreciated against Asia's 10 currencies on its own economic strength.

Giving performances of Asian currencies, David Carbon, managing director for economic and currency research at DBS, said the rupee has appreciated by 6.6 percent from July 2014 to this month against the Japanese yen, euro and USD combined.

The combined 10 Asian currencies have also appreciated by 6.6 percent against the yen, euro and USD put together over the same period.

Currencies from China, Hong Kong, South Korea, Taiwan, Indonesia, Singapore, Malaysia, Philippines, Thailand and India had, combined together, appreciated by 13.7 percent against the yen and 12.8 percent against euro. However, they lost in value by 6.1 percent against the American currency.

Individually, the gain/loss figures are the same for the Indian currency vis-a-vis others. "Asian currencies are too strong," Carbon told reporters during media briefing today, citing their performances against the yen, euro and USD. He said the Asian currencies should soften or else there would be pressure on the region's economies.

Asias combined economic growth is forecast at 6.25 percent this year. Comparatively, US growth is forecast at 2.2 percent, Japan 1.2 percent and Europe 0.9 percent during for the year. Asia is driving the global growth and not the US, he pointed out.

"For every dollar of growth the US puts on the global table, Asia now puts out USD 2.50," said Carbon. Reminding that "too strong Asian currencies" were not good, he said "Central banks (in the region) are shooting themselves in the foot."

He also reminded Asian economies to invest at home from their surpluses. Except for India and Indonesia, Asian countries have been running surpluses since 1998.