Tier 1 newswirecnbc.comFX
India's rupee forecast to weaken toward 100-per-dollar level even as RBI pushes back
The Reserve Bank of India (RBI) has taken steps to curb speculative pressures on the rupee, which analysts predict could be heading towards the 100-per-dollar threshold. By restricting rebooking of cancelled foreign exchange derivative contracts and controlling dollar demand from oil companies, the RBI signals a structural tendency for the rupee to weaken despite its defensive maneuvers. This action underscores the challenges the currency faces, driven by elevated imports and external geopolitical risks. Market participants should brace for persistent dollar strength amid these developments.