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Slowing Indian economy spells tough times ahead for the rupee: Poll

After falling nearly 9% in 2018, the Indian currency has shed another 4% this year to touch a 2019 trough of 72.40 per dollar on Sept 3. It has since popped up over 2%, along with other emerging market currencies, on hopes of a possible trade deal between the world's two largest economies.

November 07, 2019 / 08:44 AM IST

A slowing domestic economy will prevent India's rupee from recouping this year's losses against the dollar in 2020, with optimism around an easing in the US-China trade dispute not enough to give it a further boost, a Reuters poll showed.

After falling nearly 9% in 2018, the Indian currency has shed another 4% this year to touch a 2019 trough of 72.40 per dollar on Sept 3. It has since popped up over 2%, along with other emerging market currencies, on hopes of a possible trade deal between the world's two largest economies.

But nothing has been agreed yet, let alone a meeting scheduled.

A barrage of rate cuts from the Reserve Bank of India this year - five reductions in succession for a total of 135 basis points off the repo rate, now at 5.15% - has done nothing concrete so far to revive a slowing Indian economy.