Goldman Sachs predicts rupee could hit 95 per dollar
Business
Goldman Sachs thinks the rupee might slip to 95 per US dollar in the next year, mainly because of ongoing tensions in Iran.
Right now, it is at 92.44 per US dollar.
This expected dip ties back to India's growing current account deficit and could push the RBI to tighten its policies if inflation heats up.
RBI might have to step in
The RBI has kept interest rates steady so far, but rising oil prices and a weaker rupee could make everyday things more expensive.
The government is looking at ways to soften the blow (like possibly cutting fuel taxes or boosting subsidies) to help keep costs manageable, especially with urban demand slowing and rural demand holding strong thanks to lower food prices.