Economics
Rupee Set to Crash Past Record, Former Reliance FX Head Says
- Indian currency may drop toward 80 per dollar: Thiagarajan
- Rupee has a stronger historical correlation with growth
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The growth shock to India’s economy from the coronavirus pandemic will trigger more weakness in the rupee, dragging it toward an unprecedented 80-per dollar level.
That’s the view from Venkat Thiagarajan, who has traded currency markets for 26 years, and most recently served as the head of forex at Reliance Industries Ltd., which runs India’s largest corporate treasury. The rupee, he argues, has a stronger link with economic growth, and metrics like the current account, balance of payments and global dollar dynamics have a marginal impact in the medium term.