While his year-end rupee forecast is 65.8 per dollar, the currency could potentially drop past 66 during the quarter before finding an initial support at 67, he said. “The road to 2019 elections is paved with populist potholes that could dim fiscal efforts,” said Varathan. Varathan in March predicted the potential for the year climb, a view that contrasted a bearish rupee consensus at the time. “Near-term back-stops suggest that the rupee may face cyclical, and manageable, headwinds rather than a fundamental crisis of confidence,” he said. Some of the rupee’s other forecasters appear to be more positive on the currency even in the immediate future.

Source: Economic Times October 11, 2017 05:15 UTC