Fitch Projects Rupee To Weaken To 75 Against Dollar By 2019-End

Fitch Ratings projected rupee to fall to 75 against dollar by end the of 2019, on widening of current account deficit and tighter global financing.

The Indian rupee is currently trading at a two-week low level, hovering around 71 to the U.S. dollar.

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 the rupee, in its Global Economic Outlook.

The widening of the current account deficit amid tighter global financing conditions should put downward pressure on the currency, and we forecast the rupee to weaken to 75 against the dollar by end-2019, Fitch added.

The domestic unit is one of the worst performing currency against the U.S. dollar in Asia so far this year and had breached the level of 74 against the greenback in October.

The rupee fell hit at a all-time low of 74.39 against the U.S. dollar on Oct. 9 on the back of crude oil prices, strengthening of the greenback and unabated foreign fund outflows.