In view of Prakash Sakpal, Economist at ING, the Indian rupee’s oversold position over the last two months provides it with an edge to outperform in a softer US dollar environment.
Key Quotes
“Indeed, the INR stood alongside Asia’s best-performing Thai baht (THB) in last week’s global equity sell-off. However, the four-day downward USD/INR streak last week was snapped on Monday, a sign that the markets aren’t taking much comfort from the better activity data.”
“And we aren’t yet ruling out an intensified spill-over from the recent high oil price on to the INR, leaving our year-end USD/INR forecast at 76.5 (spot 73.8).”
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