Indian Rupee’s (INR) recent strength could be short-lived and the currency will likely weaken to 73 per US dollar by the end of March 2019, TD Securities’ strategist Mitul Kotecha said, according to Bloomberg.
The Indian unit has gained 0.73% so far this month, having dropped by 0.61% and 1% in October and November, respectively.
Experts are associating December’s rise with a one-off corporate inflow of about $6 billion and the Reserve Bank of India’s (RBI) decision to sell $130 million of FX assets in the week ended Dec. 6.
The central bank had boosted forex reserves by $17 billion in the two months to November, adding to bearish pressures around Rupee.
Key points (Source: Bloomberg)
The rupee may weaken to 73 per dollar by end of March, according to TD Securities and Commerzbank AG.
That compares with a median estimate of 71.50 in a Bloomberg News survey.
The currency is set for its eighth annual loss in 10 years.
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