Growth is set to turn negative in FY21. This will add to the rupee’s near-term weakness. Analysts at ANZ Bank expect a peak in USD/INR in Q3. Key quotes “Growth indicators have slumped to historic lows, including the forward looking PMI surveys. In addition, the number of active cases are yet to abate, resulting in extensions to the lockdown. This is going to weigh extensively on growth, which is likely to turn negative this financial year (starting April 2020).” “We believe the combination of the current risk-off market sentiment, increased probability of negative growth and the Reserve Bank of India’s preference for a competitive currency will see more near-term weakness for the rupee.” “We expect a peak in Q3, coinciding with the expected decline in COVID-19 cases. Nonetheless, we do not see material appreciation beyond that, with USD/INR likely to end at 79 by end-December.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Saudi Arabia and some other OPEC producers want to extend output cuts until December – Reuters FX Street 3 years Growth is set to turn negative in FY21. This will add to the rupee’s near-term weakness. Analysts at ANZ Bank expect a peak in USD/INR in Q3. Key quotes “Growth indicators have slumped to historic lows, including the forward looking PMI surveys. In addition, the number of active cases are yet to abate, resulting in extensions to the lockdown. This is going to weigh extensively on growth, which is likely to turn negative this financial year (starting April 2020).” “We believe the combination of the current risk-off market sentiment, increased probability of negative growth and the Reserve Bank of India’s… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
