Rupee may fall again at all-time low of 80 per dollar in next 3 months claims report
Despite the recent recovery, the Indian rupee may once again reach its all-time low of 80 per dollar in the next three months. In a Reuters poll, foreign exchange strategists said this on the basis of rising trade deficit and global investors’ dependence on the US dollar, which is considered a safe investment. Rupee was trading around 80.065 for a month, but on Tuesday it reached its one-month high of 78.490 per dollar.
However, it is feared that this relief will not last for long. In a Reuters poll of 40 analysts released on August 1-3, it has been revealed that the rupee will be trading near 80 per dollar by the end of October.
Almost half of the analysts expressed the possibility that the rupee will either go up to 80 per dollar in the next three months or even surpass it. At the same time, the rest of the analysts also said that the currency can see a new all-time high level in this period.
On what could be the lowest level for the rupee, 16 analysts gave an average range of 80.50 per dollar with a range of 79.75-81.80 per dollar.
The position and direction of the rupee will also depend on the Reserve Bank of India. This week the central bank is going to announce the revision of policy rates. Another Reuters poll said that the RBI may increase the repo rate by up to 35 basis points in its announcement on Friday. Right now it is running at 4.90 percent.
In today’s trading of rupee, the tension between US and China and disappointing macroeconomic data affected investor sentiments and due to this the rupee fell by 36 paise to 79.51 against the US dollar in early trade. The rupee opened at 79.21 in the inter-bank foreign exchange market, but soon it slipped to the level of 79.51. On Wednesday, the rupee had closed 62 paise lower at 79.15 against the US dollar, the biggest fall in a day’s trade in the current fiscal.
