Top Rupee Forecaster Predicts 10% Rally on Inflows: India Credit
This article is for subscribers only.
India’s rupee will rise at least 10 percent in 2013, its biggest gain in six years, as central bank interest-rate cuts spur growth in Asia’s third-largest economy, according to the most-accurate forecaster.
The currency will strengthen to 50 per dollar, according to Commerzbank AG, which had the closest estimates in the last six quarters as measured by Bloomberg Rankings. Dollar-based investors will earn 14.9 percent, including interest income, from holding rupees this year, based on the median estimate in a Bloomberg survey and prevailing deposit rates. That would be the highest in the world and compares with 8.5 percent on Mexico’s peso and 6.9 percent on China’s yuan.