Rupee to hit 73 by Mar 2019; fiscal target to be breached, says report

As global uncertainties escalate, emerging economies like India which are running twin deficits are likely to face heightened financial market volatility

India is the only major emerging market having a negative balance of payments (BoP) and the pressure is expected to sustain, a Swiss brokerage said Monday, expecting the rupee to depreciate to 73 by March 2019.

Shortfalls in GST collection and divestments, coupled with state finances being under strain will take the consolidated fiscal deficit to 6.5 per cent in FY19, against the government’s budget estimate of 5.9 per cent, UBS said.

A country's external balances constitute one of the key factors influencing the currency and weakness in it has led to a 12 per cent depreciation in the rupee