Analysis by economists suggest that Indian rupee is soon to face a downward slope after a decent trajectory of recovery.
The primary reason for the rupee’s slowdown has been linked to rising uncertainty heading into the Lok Sabha elections, due in May 2019. The rupee currently stands at Rs 70.73 against the dollar after a 4 per cent appreciation in value in November.
A drop in global crude oil prices to the tune of almost 30 per cent has significantly helped the rupee stage a recovery, but sluggish domestic demand may riddle the currency once again, noted the survey.
The report highlights that most Asian currencies faced slowdown during the current year due to a strong US dollar.
However, the rupee’s rout throughout the year has earned it the tag of the worst performing currency in Asia, with a fall of more than 10 per cent throughout the year. It further weakened by 1 per cent on Monday.