Rupee May Strengthen to 52/Dollar by End 2013, Says Credit Agricole
December 13, 2012 4:24 PM EST
Credit Agricole expects the rupee to strengthen to 52/dollar by the end of 2013, with the currency trading at relatively attractive valuations in REER terms and having priced in "many of the fundamental problems it faces."
Key imbalances in India's economy, including the current account deficit, will gradually diminish next year, says the brokerage.
However, risk-adjusted returns will be "less impressive" given the relatively high volatility in the USD/INR, it adds.
INR will also not benefit much from improvements in risk appetite given a "very low" correlation with risk appetite, Credit Agricole says.
USD/INR has been more sensitive to gyrations in the dollar, and Credit Agricole expects a gradual appreciation in the USD index over 2013 to constrain any strong rally in INR.
Most Popular Slideshows
- George Clooney And Amal Alamuddin's Wedding In Venice: Photos Of Groom And His Family, Friends [Slideshow]
- Kendall Jenner Rocks Semi-Nude Balmain Lattice Dress At Paris Fashion Week [PHOTOS]
- Walking Is Superfood For Fitness; Celebrities Who Walk For Health
- Photos Of George Clooney And Amal Alamuddin, They Get Married Again On Monday [Slideshow]
Join the Conversation
- 3 Reasons to Get the Samsung Galaxy Note 4 Instead of the iPhone 6
- iPhone 6 vs Moto G 2014: Motorola’s Budget Smartphone Takes On Apple’s Premium Smartphone
- Google HTC Nexus 9 Tablet October 24 Launch Date Benefits Many
- Galaxy Note 4 vs Nexus 6: Which Smartphone Dominates
- MH 370 Search In Ocean To Intensify With Hi Tech Ships Joining The Plane Hunt From October
- New Windows OS Is Not Windows 9, Microsoft To Launch Windows 10 As New OS Build
- Nexus 7 Tips and Tricks