Oil Puts Rupee on Course to Outstrip Taper-Tantrum Losses
- Indian currency may drop to 74.5/dollar by year-end: Barclays
- Rupee weakens to a new record low of 73.4150 on Wednesday
This article is for subscribers only.
Move over taper tantrum. The Indian rupee looks set to outpace losses seen in 2013 as efforts by policy makers to stem its rout fall flat in the face of rising oil prices and relentless foreign outflows.
Down 13 percent as Asia’s worst currency in 2018, predictions that crude -- India’s biggest import -- could return to $100 per barrel signal that things may get a lot worse for the rupee in the final three months of the year. Back in 2013, the currency had rallied in the October-December period following a two-quarter plunge of more than 13 percent on indications the Federal Reserve would wind back stimulus.