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23 Apr 2015
USD/INR expected to end 2015 by 64.0 – ANZ
FXStreet (Barcelona) - Senior FX Strategists at ANZ, Irene Cheung and Khoon Goh, explain that INR is set to move from an outperforming to an average currency, and forecast USD/INR to end the year higher at 64.0.
Key Quotes
“We have been constructive on the INR since last year, reflecting our view that the currency will benefit from a reform-oriented government which has attracted strong foreign interest in Indian assets.”
“Though we still like the macro story, we no longer expect the INR to outperform its regional peers. This is because the currency’s real effective exchange rate is no longer cheap, and portfolio inflows will likely moderate going forward.”
“In addition, we are approaching a period where the INR has typically exhibited seasonal weakness.”
“However, any weakness in the INR will not extend too far as the RBI will smooth the currency’s moves. We expect USD/INR to trade within a gentle up-channel, to end the year at 64.0.”
Key Quotes
“We have been constructive on the INR since last year, reflecting our view that the currency will benefit from a reform-oriented government which has attracted strong foreign interest in Indian assets.”
“Though we still like the macro story, we no longer expect the INR to outperform its regional peers. This is because the currency’s real effective exchange rate is no longer cheap, and portfolio inflows will likely moderate going forward.”
“In addition, we are approaching a period where the INR has typically exhibited seasonal weakness.”
“However, any weakness in the INR will not extend too far as the RBI will smooth the currency’s moves. We expect USD/INR to trade within a gentle up-channel, to end the year at 64.0.”