Rupee Slides Toward Year’s Low as India’s Trade Deficit Widens
- Carry trade is also losing favor amid volatility and Fed shift
- Traders see the rupee weakening to 76 per dollar by year end
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After months of wild volatility in the rupee, India’s widening trade deficit and elevated commodity prices are bearing down on the currency, reinforcing a recent downward bias and pushing it toward a new low for the year.
That’s the view of traders who’ve seen the rupee whipsaw from being Asia’s best performer in the first quarter to its worst in April when another wave of Covid-19 infections took hold.