As per prediction by Rabobank, a Dutch multinational banking and financial services company headquartered in Utrecht, Netherlands, Rupee is set to strengthen against major Asian currencies in the months to come.
The authorities said that the country has had most of its share of economic slowdown in 2019 and the depreciation in the currency may prompt investors to invest, which could revive growth said Hugo Erken, head of international economics at the lender and the top rupee forecaster for the December quarter in Bloomberg’s rankings.
Mr. Eken in an email said that while major Asian economies are still to face the wrath of slowdown, India has had its share in 2019.
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He added the Rupee could weaken less than 1 per cent over the next 12 months, while currency like Indonesia’s rupiah may fall up to 7 per cent followed by Thai baht by 11 per cent and the Malaysian ringgit may fall by a whopping 9 per cent .
To note, the rupee was the worst-performing currency in 2019 despite $18 billion inflow into Indian bonds and equities.
Moreover, one should not see economic slowdown and reviving money. The two concepts may have an effect on each other but are entirely different.
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Though India is still headed towards an economic slowdown, Mr. Ekren said that the same won’t prompt authorities to weaken the currency to stimulate growth.
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