(Bloomberg) — The past month’s worst performing emerging market currency is nearing a bottom, according to the head of global treasury at Asia’s largest software exporter Tata Consultancy Services Ltd.
The Indian rupee has dropped 2.9 percent over a month, the biggest slump among 24 emerging markets tracked by Bloomberg. It fell past 73 per dollar to a fresh record this week. The currency won’t drop much further with the Reserve Bank of India and government taking “adequate measures” to arrest declines, T Venkatesan, TCS’s global treasury head, said in an interview at his office in Mumbai.
“I don’t see rupee breaching 74 against dollar. That should be the cap,” Venkatesan said. “We are already close to the top of this move.”
India’s currency has declined for six straight months, prompting analysts at banks such as Barclays (LON:BARC) Plc. and Mizuho Bank Ltd. to predict a weakening past 74 per dollar by the end of the year. Weighing on the rupee are ever-higher oil prices and a current account deficit that makes India dependent on foreign inflows. Measures by the central bank and government — including raising import tariffs and easing some overseas borrowing norms — have as yet failed to revive the confidence of investors.