USD/INR is expected to advance to the 76.00 region at some point in Q1 2022, commented Strategists at the Quarterly Global Outlook from UOB Group’s Global Economics & Markets Research.
Key Quotes
“While virus risks have receded, bond purchases by the RBI and India’s dual deficits are structural tailwinds that will continue to weigh on the INR, on top of the broad-based USD strength due to the Fed’s normalization.”
“Overall, we keep to our upward trajectory of USD/INR but will moderate the point forecasts 100 pips lower in view of the recent stabilization of the INR. The revised forecasts are now at 75.5 in 4Q21, 76.0 in 1Q22, 76.5 in 2Q22 and 77.0 in 3Q22.”
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