Indian Rupee Needs Stronger Foreign Inflows to Sustain Rebound

The rupee’s recent rebound from a record low may be fleeting, with analysts predicting renewed weakness in the months ahead on inadequate foreign inflows.

Standard Chartered Plc, Australia & New Zealand Banking Group Ltd., and MUFG Bank Ltd. expect the rupee to decline to 93 per dollar by the year-end, more than 2% weaker from its current level. The currency has trailed Asian peers in the past two weeks, erasing part of its gains after the US cut tariffs on India earlier this month.