1 min read.Updated: 06 Dec 2018, 03:10 PM ISTReuters
A widening current account deficit and tighter global financing conditions to lead to rupee's fall against the dollar
New Delhi: Rating agency Fitch on Thursday lowered India’s GDP growth forecast to 7.2% in 2018-19, followed by 7.0% in 2019-20 and 7.1% in 2020-21.
Fitch also said it expects the rupee to weaken to 75 against the US dollar by the middle of next year due to a widening current account deficit and tighter global financing conditions.
Despite a few recent advances, the rupee is on track for its worst yearly performance in five years in 2018 and a Reuters poll on Wednesday had forecast it to weaken further as uncertainty builds, heading into national elections due by May.
The rupee fell to a two-week low of 71.04 against the dollar in early trade on Thursday, mimicking most Asian currencies.
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