USD/INR Price News: Indian rupee to bounce back to 72 by end-March – Nomura
|Expectations of a rare current account surplus and tapering central bank’s intervention are likely to drive the Indian rupee to pre-coronavirus pandemic levels, Bloomberg reports, citing analysts at Nomura.
Key quotes
“We see the rupee as an outperformer versus other high yielders.”
“The rupee is “placed quite well – the balance of payment improvement has been quite dramatic, and continues to benefit from the recent drop in oil prices.”
“There are some reasons to expect the RBI to taper intervention – such as the already-elevated reserves and focus on transmission.”
USD/INR on the front foot
USD/INR trades close to the highest level in five days of 74.52, buoyed by the recent strength in the US dollar and oil prices.
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