USD/INR: RBI interest rate close to 81.00 – Credit Suisse

Last week USD/INR traded below 82.00. Economists at Credit Suisse have now extended their USD/INR range to 81.00-84.0 and confirmed the risk of RBI intervention near 81.00.

USD/INR extended to 81.00-84.00

“Although we still think that the Rupee and the USD will weaken in the long term, in the short term a stable REER means that the USD/INR will reflect the general weakness of the USD, then The RBI changes its policy from time to time.”

“Now that 82.00 has been broken, we expect the central bank intervention to be stronger near 81.00.”

“Although further USD weakness means that the RBI may change its intervention channel again, recent historical data suggests that 81.00 is a red line.” ‘ As such, we extend our Q1 USD/INR predictions up to 81.00-84.00.”

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