Why the rupee could touch 66 in the next four months

Geopolitical developments in the Korean peninsula need to be closely followed as it could prove to be a trigger for a sudden spike in USD/INR

The rupee on Monday suffered another blow to plunge to a six-month low of 65.10 against the US dollar after heavy buying of the US currency and concerns on the macro-economic front. This was the weakest closing for the home currency since March 24, when it had ended at 65.41 against the greenback.Besides panic dollar buying by corporates and importers, fears over fund outflows from domestic capital market led to weakened forex market sentiment against the backdrop of imminent Fed rate hike and unwinding of its stimulus measures amid unsupportive global factors. This author explains why the rupee could fall to 66