The Indian rupee is likely to continue its weak trend against the dollar due to a probable rise in volatility in the international financial markets.According to the Reserve Bank of India's (RBI) Monetary Policy Report for October 2019, rising protectionism , slowdown in global trade may increase volatility in the financial markets. "The INR depreciated vis-a-vis the US dollar in August 2019, reflecting global developments. Currently, it is trading over 71 per dollar.Outflow of foreign funds has also hampered the movement of rupee. "Volatility in international and domestic financial markets, as well as global crude oil prices, and domestic prices of perishable food items pose upside risks to the baseline inflation path. On the other hand, the softer outlook on global commodity prices and large buffer stocks could keep headline inflation below the baseline," it said.

Source: Economic Times October 09, 2019 11:26 UTC