Rupee may hit 78/$ this year on widening deficit concerns

According to a Karvy report, private investments slow down during an election year, thus hurting the recovery of fiscal and current account deficits

78 per dollar – rupee may depreciate to this level in 2019

up to 69.50 – domestic currency is likely to appreciate this year

(-)$34.94 bn – current account deficit during the first half of this fiscal

(-)$48.72 bn – CAD during 2017-18

(-)$13.20 bn – balance of payments in first half of FY19

(-)$20.08 bn – widest balance of payments reported in FY09

Moreover, going ahead into the election year, both foreign institutional investors (FIIs) and foreign direct investors (FDIs) would try to avoid the Indian markets as the uncertainty about election outcome increases," 
— The report noted