Fitch Ratings has projected the rupee to fall to 75 to a dollar by the end of 2019 due to widening of current account deficit and tighter global financing. The Indian rupee is currently hovering at a two-week low level of around 71 to the 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 rupee. “Widening of current account deficit amid 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.
On October 9, the rupee had hit a lifetime low of 74.39 against the US dollar on high crude oil prices, strengthening of the greenback and unabated foreign fund outflows.