From best to worst: Rupee tumbles in 2 weeks on Covid, poised for more loss

Traders are concerned that the rupee's tailwinds could start fading. Rising commodity prices may push the current-account into a deficit in the fiscal year that started in April

The Indian rupee has turned into Asia’s worst-performing currency from being the best in the previous quarter. It’s poised for more losses as a resurgence in coronavirus cases to a record threatens to hamstring the economy.

The rupee weakened past 75 per dollar for the first time in eight months this week. Federal Bank Ltd. expects it to fall further to 76 by year-end. The currency’s slide may be exacerbated by unwinding of short dollar positions against the rupee, which ICICI Bank Ltd. estimates has grown to $50 billion.
 

The mayhem is also weighing on dollar bonds from the nation’s