The Indian rupee is set to underperform against the dollar again this year, weighed down by uncertainty ahead of a national election in May, but is unlikely to retest life-time lows, a Reuters poll showed.
Three weeks of narrow sideways range movement between 70.45 and 71.50 in the Indian rupee has come to an end. The rupee declined, breaking the range below 71.50, and fell to a low of 71.82 on Monday.
The battered Indian rupee will take another bruising this year, despite a recent revival, weighed down by uncertainty around national elections in May and an expected economic slowdown, a Reuters poll found.
The central bank, in April last year, had announced it was looking at issuing its own Central Bank Digital Currency (CBDC) after it tightened the noose on cryptocurrency exchanges operating in the country, forcing several of them to shut shop.
Tumbling oil prices have delivered an early Christmas present to India’s currency market, with the rally that’s put the rupee on course for its best quarter since March 2017 seen extending into the new year.
