USD/INR: Indian rupee to remain on the backfoot for now – Commerzbank

USD/INR is trading around the high in mid-May of 77.60. Economists at Commerzbank expect the pair to trend higher.

USD/INR to remain well-supported near term

“USD/INR is likely to remain well-supported near term due to liquidity outflows and the firm USD tone.”

“At best, RBI’s rate hikes should help mitigate the upside but it is unlikely to offset it altogether.”

“INR is likely to remain on the backfoot for now. This is reflected in the fact that USD/INR is still holding around the high in mid-May, around the 77.60 level, even though most of the other USD-Asia pairs have fallen back in recent weeks.”