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RBI Cut Seen Adding Fuel to Rupee Rally as Two-Year High Reached

  • Bloomberg Intelligence predicts 9.7% gain in rupee by March 18
  • Barclays, ANZ, Credit Suisse raised rupee forecasts recently
Updated on

There’s no stopping the rupee. Strategists say Asia’s best-performing currency of the past six months could climb further as the Reserve Bank of India’s interest-rate cut lures more inflows into local shares.

Benchmark borrowing costs in Asia’s third-largest economy stand at the lowest since 2010, which could spur growth, boost earnings and encourage foreigners to add to $8.8 billion of local stock purchases this year. The rupee reached a two-year high after the RBI’s decision Wednesday, and Bloomberg Intelligence predicts the currency to further strengthen to 61 per dollar by March next year.