POLL SAYS RUPEE TO FALL TO RECORD LOW OVER COMING YEAR
As per Reuters Poll the rupee to fall further low against the US Dollar this year to touch a record low, due to additional effects of Demonitisation and global crisis due to bond yields.
It is forecasted that rupee would fall to a low of 68.50 a dollar in one month against 67.73 at last close.
This means that Weaker Rupees, Higher Prices for exports.
“We see a less rosy scenario in the capital account and current account front in the coming two years, with global bond yields and money flowing back to the US,” said Bhupesh Bameta, head of FX research at Edelweiss Financial Services in Mumbai.
“Given the demonetisation exercise, the attraction for gold may come back again,” Mr Bameta said. “(Given) the fact that there was no meaningful depreciation of the rupee over the last two years when everything else was depreciating, a correction…is due.”
The Demonitisation move has affected employment of many laborers, industrial as well as service sectors.
Related Tags:- Rupess Record Low, Demonitisation.