Rupee Runs Into Seasonality Wall After Best 1Q Since 1975
- Indian currency has slid in all April-June periods since 2009
- Higher gold, oil prices to weigh on current account: Mizuho
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The rally that’s made the rupee Asia’s best performer in the past three months is threatened as the Indian currency enters a seasonally weak period.
The rupee has declined in each of the last seven April-June quarters, with its performance often marred by a periodic increase in India’s gold demand. This time, rising Brent crude prices are also seen weighing down the currency. Asia’s third-largest economy is the world’s second-biggest buyer of the precious metal and relies on imports for about three quarters of its oil needs.