Economists at ANZ Bank share their USD/INR forecasts.
RBI will likely build its FX reserves further
We expect the Rupee to appreciate on the back of a softer US Dollar by the end of 2023 and an overall balance of payment surplus in FY24. However, we expect these gains to be limited, as the RBI will likely build its FX reserves further.
Using its two-way intervention, the RBI has lowered the INR’s volatility, which in the face of Dollar softness, has led to a depreciating nominal effective exchange rate. This, in our view, ties well with the government’s manufacturing and export campaigns. However, with lowered volatility and stable macro conditions, INR offers a decent carry play in the Asian complex.
USD/INR (end of period) – 2023 81 2024 79.30 2025 79
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
www.fxstreet.com