Ru­pee seen weak­en­ing to 75 against dol­lar by De­cem­ber 2019

Financial Chronicle - - PLAN, POLICY - FC BU­REAU

FITCH Rat­ings on Thurs­day pro­jected ru­pee to fall to 75 to a dol­lar by end of 2019, on wi­den­ing of cur­rent ac­count deficit and tighter global fi­nanc­ing.

The In­dian ru­pee is cur­rently trad­ing at a twoweek low level, hov­er­ing around 71 to a US dol­lar.

In its global eco­nomic out­look, Fitch said it ex­pects in­fla­tion to edge up mildly in the com­ing months, on nor­mal­is­ing food prices and higher im­port prices stem­ming from the de­pre­ci­a­tion of the ru­pee.

“The wi­den­ing of the cur­rent ac­count deficit amidst tighter global fi­nanc­ing con­di­tions should put down­ward pres­sure on the cur­rency, and we fore­cast the INR to weaken to 75 against the dol­lar by end-2019,” Fitch added.

The do­mes­tic unit is one of the worst per­form­ing cur­rency against the US dol­lar in Asia so far this year and had breached the level of 74 against the US dol­lar in Oc­to­ber.

On Oc­to­ber 9, the ru­pee fell hit at a life­time low of 74.39 against the US dol­lar on high crude oil prices, strength­en­ing of the green­back and un­abated for­eign fund out­flows.

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