Current rupee slide is essentially capital flows-driven weakness cycle; currency to remain under pressure for next few weeks: BofA India Economist Rahul Bajoria

With the rupee sliding to a record low by breaching the 90-mark against the US dollar, India is essentially seeing a capital flows-driven weakness cycle, which is probably led by the anxiety on the growth front, the impact of the unfinished trade deal, and similar such factors, Rahul Bajoria, Head of India and ASEAN Economic Research, BofA Global Research told The Indian Express. In an interview with Aanchal Magazine, Bajoria said the key difference for the rupee slide in this phase is that it is not accompanied by widening current account deficit, as was the case during earlier periods of weakness — taper tantrum, or 2018. The rupee will remain under pressure in the next few weeks because now that a big figure has been breached, the pressure on RBI to hold a particular level is less, he s