What will drive rupee in 2019

Risk sentiment is likely to be favourable if oil prices stay benign and the dollar index does not break out

The entire backdrop of global asset allocation trends and risk-return trade-offs has witnessed a sea change in the past two months. The catalysts for this significant shift have clearly been the recent fall in oil prices, which has been nothing short of miraculous, and the simultaneous unfolding of a global growth slowdown scare. But the severity of decline in oil prices, the change in global growth sentiment and the expected slowdown in US Fed rate hikes in the next year still do not fully explain the change, even after attributing it to various fundamental factors such as the supply glut