USD/INR should hover around the 83.00 level in the near term – MUFG
|The Indian Rupee (INR) was marginally stronger against the US Dollar (USD) in January. Economists at MUFG Bank analyze USD/INR outlook.
USD/INR to fall towards the 82.00 level in the second half of the year
We expect the INR to benefit from strong capital inflows from bond index inclusion in 2024, while RBI intervenes to absorb flows, thereby limiting the extent of INR appreciation.
In the near term in Q1 2024, we think that USD/INR should hover around the 83.00 level as the RBI rebuilds FX reserves before falling more convincingly towards the 82.00 level as the broader Dollar weakens in 2H 2024.
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.