USD/INR: Rupee to trade in 69-73 - ET Survey

According to an exclusive ET survey of market experts, the Indian National Rupee (INR) is likely to trade in the 69-73 range against its American counterpart heading into the general elections scheduled in May.

Key Findings:

“The majority of the 25 participants polled in the survey said the benchmark bond yield could fall 25-45 basis points from the current level of 7.45 percent. 

About half the participants expect rates to decline about 50 basis points. Global crude prices peaked at $86 per barrel on October 3, but have entered the bear market since. Such a sharp fall has lowered broader market concerns over India’s current account deficit. 

The rupee is likely to trade in the range of 69 to 73 to a dollar, said most of the poll participants, who expect bouts of volatility in the run-up to the general elections, expected in April-May.

The uncertainty could send the rupee closer to its record low of 74.48, hit on October 11 last year.” 

It’s worth noting that the Indian Rupee clocked fresh five-month highs versus the US dollar, knocking-off the USD/INR cross to the lowest level since early August 2018.

The USD/INR pairing fell as low as 69.18 in the Asian trades before recovering sharply to the 69.90 level, up +0.53% on the day.

USD/INR Technical Levels