USD/INR: Robust FX reserves, USD stabilization to aid Rupee in 2019 – Standard Chartered

Analysts at Standard Chartered Bank offer their outlook on the USD/INR cross for 2019, with the key quotes found below.

“The rupee will have enough support over the next 6-12 months.”

“Attractive real yields (net of inflation), growth momentum and robust FX reserves of $394 billion and dollar stabilization” are likely to be positive for the rupee, while “lower global growth and trade will eventually impact the US economy and asset markets, causing the US Federal Reserve to slow the pace of rate hikes”.

“The dollar is expected to stabilize as interest rate differentials between the US and the rest of the world peak.”

It’s worth noting that the Indian National Rupee (INR) emerged the worst among Asian currencies in eight years and was down 8.46% in 2018. However, the Rupee kicked-off 2019 on a stronger note, having hit fresh five-month top versus its American peer at 69.18 a day before.

At the press time, USD/INR extends its yesterday’s rebound from 5-month lows and trades around the 70 handle amid a solid rebound in the US dollar and oil prices.

USD/INR Technical Levels