With core CPI inflation still within the RBI’s band and below 4 percent, it is more likely that the central bank will continue to hold status quo in the upcoming meeting.

The current situation suggests that the impact on the currency shall remain biased towards depreciation with a cap near 72.40 levels until March 2020.

Due to an unexpected shortfall in revenue and higher spending, the fiscal deficit for the current financial year is likely to edge higher at 3.7-4 percent. However, the same is likely to slow down the capital flows into the country which could lead to the currency’s weakness towards 71.50 levels.

The dollar buying programme by the Reserve Bank of India has become a talk of the town of late. But was it the same case in the preceding years? Let’s have a look at how the RBI intervened in the dollar for the past three years.

Globally, emerging market currencies have been on a rollercoaster rise driven by the US-Sino drama. As we glance through 2019, most of the Asian currencies had depreciated against the dollar.