Budget 2018: Jaitley's speech, deficit data to decide rupee's fate in 2018

How Modi fares in reining in the fiscal deficit while seeking to jump-start activity may determine the currency's direction for the remainder of the year, analysts say

Don’t let the rupee’s strength fool you, strategists say. The rally that boosted the currency to the strongest in 32 months will probably be short-lived. 

The rupee is facing headwinds as elevated energy prices threaten to increase inflation and worsen public finances in a nation that imports most of its oil needs. Traders are also bracing for higher government spending as Prime Minister Narendra Modi is set to take measures in the February budget to revive an economy that’s forecast to grow at the slowest pace in four years.

How Modi fares in reining in the fiscal