Rupee Set to Keep Tiptoeing to New Lows as Policy Pivot in Focus
- Barclays, Morgan Stanley see the currency weakening further
- RBI seen continuing with interventions to prevent sharp swings
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The Indian rupee slumped from emerging Asia’s best-performing currency at the start of the year to among the worst this quarter, and the decline will likely extend.
The currency tested successive lows in recent days amid outflows from local stocks following a hike in equity taxes and dollar demand from importers. Any indication of a dovish shift in the central bank’s Aug. 8 policy may further push the rupee lower.