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.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.