Most Bullish Forecaster Sees Indian Rupee at 67 on Modi Return
Rupee may strengthen to 67 per dollar by end-June, a level last seen in June 2018, according to Scotiabank’s Qi Gao.
(Bloomberg) --
India’s rupee is likely to outperform Asian peers to reach its highest level in a year as the prospect of Prime Minister Narendra Modi securing a second term lure more foreign inflows, the most bullish forecaster for the currency said.
The rupee may strengthen to 67 per dollar by end-June, a level last seen in the same month last year, said Qi Gao, a currency strategist at Scotiabank in Singapore. That compares with a median forecast of 70.13 in a Bloomberg survey. Another rate cut by the Reserve Bank of India in its June policy, will also help boost local equities and bonds, said Gao.
![Most Bullish Forecaster Sees Indian Rupee at 67 on Modi Return](https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iG__rEXD063Y/v2/560x-1.png)
The rupee rallied the most since December on Monday as stocks hit a record high after exit polls signaled Modi’s return to power for a second term. Actual results will be known on Thursday, when the votes are counted. The rupee was little changed Tuesday at 69.77 per dollar.
--With assistance from Kartik Goyal.
To contact the reporter on this story: Ragini Saxena in Mumbai at rsaxena30@bloomberg.net
To contact the editors responsible for this story: Arijit Ghosh at aghosh@bloomberg.net, Anto Antony, Pradeep Kurup
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