Fitch Ratings Inc, one of the “Big Three credit rating agencies”, has predicted that the rupee will fall further and will reach 75 against the dollar. This is expected to happen before 2019 end.
The fall of the rupee will be partially due to a widening current account deficit and partially due to the global financial conditions worsening in 2019. Currently the rupee stands at 71.025 against the dollar.
The rupee is at it’s worst ever , since the Modi government took over the reins in New Delhi five years ago. With national elections due in 2019, the forecast is even lower as uncertainty keeps increasing.
This is not specific to India. Most Asian currencies have fallen this week and the forecast is not a good one for them. How the respective governments decide to tackle it is yet to be seen.