Indian Rupee to hit all-time low vs US dollar again?
Rupee recovered nearly 6% after touching a record low of 74.485 per dollar on October 11, but poll of more than 65 analysts between the period of January 2-8 showed that the rupee will weaken again.
Indian rupee seen at 80 vs US dollar! Yes, despite witnessing a recent revival, Indian rupee will take another battering in 2019 following uncertainty around general elections in May and an expected economic slowdown. This is according to a Reuters poll. It cited experts who feel that some critical factors are not great, going forward, on the economic as well as political fronts. Some top factors:
1. Rupee recovered nearly 6% after touching a record low of 74.485 per dollar on October 11, but poll of more than 65 analysts between the period of January 2-8 showed that the rupee will weaken again.
2. According to the poll, fewer than 20% of contributors expected the rupee to breach that all-time low in the next 12 months, compared to nearly 50 percent in a November survey and about one-third in December.
3. After witnessing about 9% fall in 2018 - the biggest decline since Prime Minister Narendra Modi took office in 2014 - rupee was forecast to weaken 1.9% to 71.50 per dollar in a year, from about 70.20 on Tuesday.
4. Meanwhile, two-thirds of those who gave a year-ahead forecast predicted the domestic currency to be weaker - trading at more than 70 per dollar, with the most pessimistic call at 80. However, others either had it around where it is now or a touch stronger.
5. Prakash Sakpal, Asia economist at ING, told Reuters, “Overall there’s nothing to be greatly optimistic about the rupee. There are lots of uncertainties, both on economic and political fronts lingering as we enter into 2019.”