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Fitch projects rupee to weaken to 75 against dollar by 2019 end

Fitch Ratings Thursday projected rupee to fall to 75 to a dollar by end 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 a 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 the rupee.

“The widening of the current account deficit amidst 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.

 

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