Home Forex More consistent intervention by RBI around 81:00 – Credit Suisse

More consistent intervention by RBI around 81:00 – Credit Suisse

by SuperiorInvest

Last week’s dollar sell-off pushed USD/INR below 82.00. Economists at Credit Suisse are now widening their USD/INR range to 81.00-84.0, highlighting the risk of RBI intervention near 81.00.

USD/INR target extended to 81.00-84.00

“While we still think the rupee will weaken against the USD in the long term, the short-term stability of the REER means that USD/INR will reflect a broad weakening of the USD as the RBI shifts its intervention corridor accordingly at times.”

“Now that the 82.00 level has been broken, we expect more consistent central bank intervention near 81.00.”

“Although further USD weakness means the RBI could shift its intervention corridor again, recent history suggests 81.00 is a firmer ‘red line’.” Therefore, we are expanding our USD/INR for Q1 forecast range 81.00-84.00.”

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