For Quick Alerts
For Daily Alerts

Rupee To Moderately Fall Towards 69 In 9-12 Months: Citi


The rupee is likely to "moderately depreciate" towards the 69 level in the next 9-12 months on the back of higher crude prices in the second half of next fiscal, a Citigroup report says.

Check the currency rates against all the world currencies here.

Rupee To Moderately Fall Towards 69 In 9-12 Months: Citi
69.274 United States Dollar
78.953 Euro

According to the global financial services major, the other factor that is expected to play a big role is the local currency's persistent inflation differential with trading partners.

"We expect INR-USD to moderately depreciate towards 69 over 9-12 months on the back of higher crude prices in the second half of FY17 and persistent inflation differential with trading partners," Citigroup said in a research report.

The report, however, said a sustained weakness in USD against the emerging market forex remains a key risk to this view. Meanwhile, forex reserves have increased by around USD 14 billion so far this fiscal, in line with surplus balance of payment, but the pace of increase has moderated in January-March (USD 3 billion till early March).

In March, the rupee appreciated 2 per cent against dollar, but still lagged its emerging market peers.

According to experts, the rupee has been under-performing since the beginning of this year, and besides competition among some emerging market currencies, domestic concerns over manufacturing have hit the currency hard. The rupee is currently hovering around 67 per dollar.

The global brokerage firm has adjusted its 2016-17 balance of payment forecast to reflect emerging trends. "We also make marginal adjustments to the capital account projections and expect a strong BoP surplus of USD 29.3 billion in 2016-17 (USD 38.2 billion earlier)," the report added.


Read more about: rupee currency dollar citi
Story first published: Wednesday, March 23, 2016, 13:01 [IST]
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'


We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more