Rupee is BRIC's second fastest growing currency

Source: PTI

December 23, 2007 11:14 IST

The Indian rupee has become the second most appreciating currency against the US dollar among the currencies of BRIC (Brazil India Russia China) nations, with a surge of close to 11 per cent in 2007, says an analysis.

While all the four countries have seen a sharp rise in their currencies against the US dollar, the pace of rupee appreciation is only next to the Brazilian real since the beginning of this year.

The rupee has appreciated 11 per cent from Rs 44.10 levels to Rs 39.34 against the dollar in 2007 so far, way ahead of China's yuan renminbi, which gained about six per cent in the period, according to an analysis of the exchange rates in the four countries versus the US greenback.

Russia's rouble has also seen a rise

of six per cent in the same period. However, Brazil has registered a faster surge of about 16 per cent in its currency.

The Chinese currency has appreciated to 7.8 Yuan from 7.36 yuan against the dollar during the year, while Russia's rubles grew stronger to 24.75 against the dollar from 26.35 at the beginning of the year. Brazilian real has appreciated to 1.79 to one dollar, from 2.13 at the beginning of this year.

Incidentally, India's forex reserves is the second lowest after Brazil among the four BRIC countries.

The forex reserves in India stands at $272.95 billion, higher than only Brazil's $177 billion.

China has the highest forex reserves among these four at about $1.5 trillion, followed by Russia's $464 billion.