The Indian rupee has plunged almost 5 percent against the greenback since pro-business Prime Minister Narendra Modi swept to power in May – so what’s behind the currency’s fall and where is it headed next?
Foreign exchange strategists point to a confluence of factors behind the currency’s recent weakness starting with skepticism over the Modi-led Bharatiya Janata Party (BJP) government’s resolve to usher in economic reforms.
“The market is disappointed with the recent budget and a lack of fresh initiates from the new government,” Nizam Idris, head of strategy, fixed income and currencies at Macquarie told CNBC.
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