USD/INR Not Out Of 70.0 Woods

The Indian rupee – one of the world’s worst performing currencies this year – has pulled back from record lows in recent weeks, but analysts say a fresh record low of 70 to the dollar is not off the table.

“I’m hesitant to suggest the worst is over for the rupee,” said Mitul Kotecha, head of foreign exchange strategy at Credit Agricole.

“Eventually this near-term consolidation will give way to a resumption of downward pressure,” he said, adding that he forecasts the rupee to breach the 70 to the dollar level in the first quarter of next year.
“In the first quarter [of 2014] there will be uncertainty around the elections in India, tapering will also be likely to have taken effect and then there’ll be concerns about capital flows,” he added.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu