According to the latest Reuters poll of market strategists, the Indian Rupee (INR) is likely to recover this year’s losses against the US dollar over the next year.
Key Findings:
“The rupee is forecast to gain nearly 2% to trade at 69.60 per dollar in a year from Monday’s low of 70.82.
That marks the most optimistic 12-month outlook for the currency since August 2018 but depends heavily on improvement in U.S.-China relations, which have only just taken a turn for the worse.
Nearly three-quarters of 26 contributors who answered an additional question said the Indian government’s recent decision to issue sovereign debt in foreign currencies, if implemented, would support the rupee.
Over a third of common contributors from last month now forecast a more pessimistic outlook for the rupee.”
Extra Reading:
RBI cuts rates by 35 bps, a bigger-than-expected cut (USD/INR stays below 71.00)
Sources: China warns India of ‘reverse sanctions’ if Huawei is blocked – Reuters
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