With oil prices on the ascent again, bets that tens of billions of dollars in fresh capital inflows would sustain a recovery in the Indian rupee have all but vanished.
A more than 20% jump in crude oil in two weeks has prompted analysts from Danske Bank AS and Ebury Partners Ltd. to predict fresh lows for the rupee against the dollar. A central bank-led policy blitz to attract foreign capital — estimated by Citigroup Inc. to fetch as much $80 billion — has at best proved to be fleeting in effect as the rupee has slid about 2% from a June high and is hovering near a record low.
