Despite a few recent advances, the rupee is on track for its worst yearly performance in five years in 2018 and is forecast to weaken further. “Politics is likely to decide the course for the Indian rupee in 2019. The political heat is already rising as the elections being held in five states currently will set the tone for the national elections in May 2019,” noted Prakash Sakpal, Asia economist at ING.
Sakpal said it will be tough for Prime Minister Narendra Modi’s government to retain power for another term, noting the lingering public anger followed a chaotic demonetization in late 2016 and the implementation of a Goods and Services Tax in mid-2017.
- The Indian rupee appreciated this week by ₹0.22 compared to the previous week close.
- Last week Indian rupee closed at ₹69.94 with a gain of ₹0.21
- last trading day of the week rupee closed at ₹69.72 with gain of 0.47 paisa.
- Highest gain ₹0.47 on 04th and highest fall ₹0.72 on 02nd