Indian Rupee continued the downward trend against the Dollar. On Monday alone, A massive fall of 29 paise was recorded. About 11 paise drop on Tuesday placed Rupee at 68.24 against US Dollar. This happened because of the rise in demand for US Currency from Corporates and Importers. Even the rise in Crude Oil prices and sluggish run of equities in the Domestic Market led to this situation.
As per Barclays Report, Indian Rupee will decline further and touch 72 against US Dollar by the end of 2018. This is because Crude Oil prices will affect the Government Finances and Foreign Investors would get rid of Indian Assets. An annual drop of 11.3 percent will be recorded if this becomes reality and that's worse than what it is in 2013.
Political Risks ahead of 2019 Polls, Poor Bond Market and RBI Policies will make it really difficult for NDA Government to change the downward trend. As much as $6.7 billion from Indian Stocks and Bonds have been withdrawn this year due to rising Crude Oil prices and tougher Global Yields