Emirates' rupee forecasts -- 67.5 to the dollar by end-September and 67 by end-2018 -- are at odds with a bleak broader outlook for the currency
Capital outflows, sparked by India's widening current-account deficit and the risk-off mood that's roiled emerging markets recently, have put the rupee under pressure
The tariff war imposed by the US on Chinese goods, estimated at $34 billion starting Friday, has forced the Chinese currency to depreciate
He also said the country has significant foreign exchange reserves
The volatility is being driven by global factors, the Economic Affairs Secretary added
Indian lenders can hardly afford another headwind as they absorb trading losses from the past year's drop in sovereign bonds and continue to battle one of the world's worst bad-loan ratios
Higher opening of the domestic equity market also propped up the rupee, forex dealers said
This is the lowest closing for home currency since November 24, 2016, when it had settled at 68.73
This is the rupee's lowest level against the greenback since November 29, 2016
Meanwhile, the US dollar rose towards a seven-month high against its major peers in early Asian trade
India's goods surplus with the US was $23 billion in 2017, much lower than China's $375 bn
The home currency touched a high of 64.95 in early trade against the greenback
It has been one of the weakest currencies globally this year, with suspicions of capital flight and slowing capital inflows
Rupee has already lost little more than 2% against the dollar since the beginning of the year
The rupee traded almost flat in most part of the day but fag-end dollar selling helped the local currency extend gains for the third day in a row
Currency traders and speculators avoided taking huge positions ahead of the long weekend also the focus turned towards the second testimony by Fed's Powell
The latest Fed policy-meeting minutes had cemented expectations of more aggressive US rate hikes this year
The rupee has given back all its 2018 gains post budget announcements
Currency traders cautious ahead of NDA govt's last full-year Union budget before 2019 general elections, RBI's policy meet
Continuing its winning streak, the rupee has strengthened by a solid 47 paise in last three sessions