A drop in global crude oil prices has significantly helped the rupee stage a recovery, but sluggish domestic demand may riddle the domestic currency once again.
The Indian rupee, which staged a decent recovery after almost cross the Rs 74-mark against the US dollar, is set to weaken over the next six months, according to a poll by news agency Reuters.
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.