Indian Rupee likely to bounce back over coming 12 months - Reuters poll

According to the latest Reuters poll of market strategists, the Indian Rupee (INR) is likely to recover this year’s losses against the US dollar over the next year.

Key Findings:

“The rupee is forecast to gain nearly 2% to trade at 69.60 per dollar in a year from Monday’s low of 70.82.

That marks the most optimistic 12-month outlook for the currency since August 2018 but depends heavily on improvement in U.S.-China relations, which have only just taken a turn for the worse.

Nearly three-quarters of 26 contributors who answered an additional question said the Indian government’s recent decision to issue sovereign debt in foreign currencies, if implemented, would support the rupee.

Over a third of common contributors from last month now forecast a more pessimistic outlook for the rupee.”

Extra Reading:

RBI cuts rates by 35 bps, a bigger-than-expected cut (USD/INR stays below 71.00)

Sources: China warns India of 'reverse sanctions' if Huawei is blocked - Reuters