USD/INR to hit 82 by year-end – ANZ

The Reserve Bank of India (RBI) recently allowed USD/INR to rise past the psychological 80 mark. The rupee is expected to remain weak, according to economists at ANZ Bank.

USD strength to weigh on the rupee

“INR is over-valued from a peer perspective and domestic liquidity has been falling, making aggressive dollar sales difficult from a liquidity management point of view.”

“We see risks from further strength in the US dollar, which will weigh on the rupee.” 

“The RBI may continue to intervene, but the scale of dollar sales will have to be clipped.”

“We expect USD/INR at 82 by year-end.”