Indian rupee to remain on slippery slope next year – Reuters poll

Dhwani Mehta FXStreet

Ahead of the highly-anticipated Reserve Bank of India’s (RBI) monetary policy decision due later on Thursday at 0615 GMT, the latest poll of currency strategists surveyed by Reuters showed that the Indian rupee will remain under pressure in the coming year amid doubts over any kind of trade truce between the United States and China.

Key Findings:

“The Dec. 2-4 poll, taken before the monetary policy committee's announcement due later on Thursday, showed the currency would weaken 0.6% to 72.00 per dollar in a year from 71.57 where it was trading around on Wednesday.

The year ahead outlook was the most the pessimistic for the rupee since October.

Over the coming year, 23 of 51 strategists expected the rupee to breach 72.40 against the dollar - its weakest trade this year. Six of those expected it to weaken beyond its lifetime low of 74.48 per dollar.

But a few analysts argued the rupee's weakness was a deliberate attempt by the RBI to boost exports that have been on a downward trend.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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