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.

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

On October 9, the rupee fell hit at a lifetime low of 74.39 against the US dollar on high crude oil prices, strengthening of the greenback and unabated foreign fund outflows.