The Indian rupee lost value on Thursday against the world's reserve currency as speculation mounted that the currency's recent gains were overdone, according to Bloomberg.
Dropping from its top value since July of last year against the U.S. dollar, the rupee lost value amid confidence that the Reserve Bank of India will slash the pace of the currency's gains. Through the Wednesday trade session, the monetary unit of the subcontinent has climbed about 3.2 percent against the greenback.
According to a Reuters poll of economists and analysts, the aftereffects of political elections and the laggardly pace of growth will drag down the rupee's value as the year continues.
"Foreign inflows are likely to pick up further as we approach the elections and it is unlikely that they will withdraw until the outcome is known," head of foreign-exchange trading Ashtosh Raina with HDFC Bank Ltd. in Mumbai told the news source on Thursday. "The rupee's movement ahead largely depends on election outcome and only a government that has pro-growth policies will help it appreciate further."
The Indian monetary unit slipped roughly 0.5 percent against the greenback on Thursday.
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