‘Worst may be over for rupee against dollar’

Expect 67-68 range by Dec.: economist

The rupee has suffered significant losses this year but the worst seems to be over and the domestic currency is expected to be in the range of 67-68 against the U.S. dollar by December, according to an economist with HDFC Bank.

The rupee ended below the 70-mark against the U.S. dollar for the first time ever on August 16 and has lost 10% so far this year amid global uncertainties and concerns over inflation.

“Barring a few episodes that could still come in due to extreme volatility in the markets, definitely the worst for the INR seems to be over. We think that by September end, the fair value of the rupee would be around 68-69 and that is where it should go and settle,” Sakshi Gupta, India Economist, HDFC Bank told PTI.

The dollar rally is likely to fade out as the U.S. mid-term elections take place in November and also as the twin deficit problem in the U.S. resurfaces, the market would start focusing on that, she said.

“By this fiscal year-end the fair value of rupee is expected to be around 67-68. But going into next year with election risks coming in domestically... usually we see a lot of volatility in the currency markets just before the elections.”

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Printable version | Jun 5, 2020 10:38:01 PM |

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