Rupee may slide to 80 against the dollar by September: Royal Bank of Canada

The rupee is already the worst performer this year in Asia ex-Japan amid the uncertainty surrounding the upcoming elections, where Prime Minister Narendra Modi is seen facing a tight contest

A barrage of bad news have taken the sheen off India’s rupee lately. And Royal Bank of Canada says the currency may suffer more pain.

The rupee may weaken to 80 per dollar by September as a dovish turn by the central bank lowers the currency’s yield appeal, said Sue Trinh, head of Asia forex strategy at RBC in Hong Kong. The prediction is way more bearish than the 71.25 median forecast in a Bloomberg survey, and implies a drop of more than 11 percent from current levels.

Reserve Bank of India’s new chief Shaktikanta Das cut interest rates last