Top Forecaster Sees Rupee Weakening for Fifth Year: India Credit
This article is for subscribers only.
The top Indian rupee forecaster said the currency will weaken against the dollar for a fifth year, and that may limit the central bank’s room to cut interest rates.
The rupee is set to drop 2.6 percent to 64 a dollar by end-2015, a level last seen in September 2013, from 62.30 today, according to ABN Amro Bank NV, which had the most accurate estimates in the last four quarters in Bloomberg’s rankings. That matches the prediction by ING Vysya Bank Ltd., which came third, while Scotiabank, the fourth best, forecasts a decline to 65. The currency fell 2 percent last year, completing its longest losing streak since 2001.