FRX: Indian Rupee Weakens on Forecasts of Widening Account Deficit
The Indian rupee fell against the US dollar today on worries that the country’s current-account deficit may widen. The concerns were triggered after the Reserve Bank of India blocked dollar and euro payments towards buying Iranian oil. India’s current-account deficit widened from $12.1 billion during the 2Q10 to $15.8 billion in 3Q10. It is expected to spike to $17 billion by June 2011, according to forecasts by analysts. As a result, economists are predicting the rupee’s appeal to fall, and it may fall to 4.5 percent this year.
USD/INR spiked to 44.941 at about 11:06 GMT today after opening at 44.620.
