Rupee Seen Rallying 4.4% as Options Turn Bullish: India Credit
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India’s rupee will extend its best rally in three years and strengthen past 50 per dollar in 12 months as the government’s biggest policy push since 2009 lures investors, according to the most-accurate forecaster.
The rupee will rise 4.4 percent in a year to 49.70, according to Oversea-Chinese Banking Corp., which had the closest estimates in the last six quarters as measured by Bloomberg Rankings. One-month contracts offering the right to buy the rupee are costlier than those to sell for the first time in three years, data compiled by Bloomberg show. The so-called risk reversal rate is below zero compared with 25 basis points for China’s yuan and 49 for the South Korean won.