USD/INR: Rupee to end 2019 at 71.15 – Bloomberg survey

According to the median estimate in a Bloomberg survey of economists, the Indian National Rupee (INR) will end 2019 at 71.15 per dollar.

Meanwhile, a separate survey of strategists showed that the Rupee is likely to be a top performer in 2019 after largely painful 2018.

Key Reasons cited:

Rupee forecasters’ base case is that the Bharatiya Janata Party (BJP) will return to power with the help of coalition allies.

The slump in crude and hopes of a slowdown in the pace of tightening by the Federal Reserve mean the high-yielding currency may resume its winning ways next year,

Hugo Erken, Senior Economist at Rabobank noted: “Number of developments bode well for INR in the short term; expect it to bottom out to 69.1 in May Inflation has been surprising on the downside and Fed has softened its tone Expect BJP to win sufficient seats for a majority with partners; it may have to resort to coalition-based politics, which will likely stall business-friendly reform agenda USD/INR forecast for four quarters — 70.8, 69.3, 70 and 70.4.”

USD/INR Technical Levels