The Indian rupee is currently the worst performing currency in Asia right now and has fallen by more than 12 per cent against the US dollar in this year. It hit a record low of 72.91 against the US dollar and analysts warn the “worst is not yet over”.
Hugo Erken, chief economist at the Dutch multinational Rabobank has said, “India should brace for more rupee weakness, due to a further pickup of inflation. We expect the rupee to reach a steady rate of somewhere around 75 against the US dollar.”
The weaker currency is also sparking foreign sales of bonds and stocks, which in turn is further pressuring the rupee. But according to the ruling party, the rupee was still performing better than some other currencies and the country had sufficient foreign exchange reserves.
Mohan Guruswamy, the former economic adviser to the Indian government, said “The crisis is ongoing. The rupee fall is partly a global crisis as well, that’s because of the US declaration of a trade war which is adding to the pressure and the uncertainty.”
[source_without_link]SIASAT NEWS[/source_without_link]