Rupee at 15-month low: As it crosses the 67 mark, where is it headed?

The rupee's depreciation has been steep, making it one of the worst performing currencies amongst emerging markets

After a protracted period of carry dominated low volatility, USD/INR sprang to life in the last fortnight, breaking through the crucial resistance of 65.35. The depreciation since has been steep, making Rupee one of the worst performing currencies amongst emerging markets (EMs).

Much of this up move was on the back of domestic factors. With broad based USD turnaround also looking likely, macros and technicals are stacked against the Rupee. Oil prices, too, will remain upbeat on Iran sanctions putting pressure on the Indian unit.

The current bout of Rupee weakness does not just seem like a passing phase. The