USD/INR: Rupee to return to 68/69, but will take much longer - Rabobank

Hugo Erken, Senior Economist at Rabobank, offers his outlook on the Indian Rupee (INR) in the coming months.

Key Quotes:

“We have altered our forecasts considerably after the RBI’s decision to keep its policy rates on hold in October, which, in our view, is a policy error.”

“We hold on to our view that the INR will return to its fundamental value of approximately 68/69 against the U.S. dollar, but the trajectory towards this value will take much longer and be more painful than we initially anticipated.”

Also Read: Indian Rupee to see little reprieve over the coming year – Reuters poll