Rupee to remain at 68-72 against $ in near term: UBS

Source: The Hitavada      Date: 12 Jul 2018 14:37:07


 

 

NEW DELHI

THE rupee is expected to be around 68-72 against the USD in the next 2-4 months, and the depreciation bias in the domestic currency is likely continue, says a UBS report. According to the global financial services major, the rupee is expected to strengthen, and by the end of this financial year rupee is likely to be near 66, and by end-2019-20 at around 66.5.


“In the near term (the next 2-4 months), we believe depreciation bias in the rupee is likely to remain. Indeed, we expect the it to remain at 68-72 against US dollar,” Tanvee Gupta Jain (Economist) and Rohit Arora (Strategist), UBS Securities India said. According to UBS, 68-72 per dollar rate for rupee would be largely led by three factors: debt outflow (USD 6.4 bn in June 2018 quarter), driven by tighter external conditions; pre-election uncertainty, which is likely to continue until April-June 2019, and fact that sum of CAD and net FDI flow should widen to USD 37 bn, from USD 18 billion in FY18.