Year-to-date, the Indian Rupee is up 0.4% vs, the US Dollar (USD) while Asia ex-Japan currencies are down on average by 2.3%. Economists at Commerzbank analyze USD/INR outlook.
RBI to stay on hold for the foreseeable future
INR continues to be well supported by strong economic fundamentals, the pullback in Oil prices, and moderation in domestic inflation.
RBI is expected to leave rates unchanged at 6.5% for the foreseeable future and to take their cue from the Fed.
We project USD/INR to hold steady at around 83.50 by the end of 2024.
Source: Commerzbank Research
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