Rupee Could Hit 62.50-62 by March
America Merrill Lynch. “The central bank will continue to build reserves amid unidirectional flows. There is nothing wrong in it as it always aims to ensure a stable exchange rate.”
The rupee’s value increase is an opportunity for the Reserve Bank of India (RBI) to create sufficient forex reserves. The central bank intervenes in the market buying dollars to curb volatility.
Deutsche Bank, for its part, cut its forecast on the rupee from 72.50 predicted earlier to 66 a dollar by March-end.
With the strong Dollar cycle likely to have peaked, the rupee has appreciated based on India’s strong Balance of Payments position, said Kaushik Das, the Mumbai-based economist at Deutsche Bank.