Economists at ANZ Bank expect the Indian Rupee (INR) to appreciate slightly over the course of the year.
INR to remain less volatile than other Asian currencies
The balance of payments surplus points to further strength in the Rupee, but the Reserve Bank of India's intervention in the foreign exchange market to keep the Rupee stable has limited volatility compared to the USD in Asia.
As far as possible, The Reserve Bank of India has been accumulating foreign exchange reserves, which have reached historical highs. Considers that they, and not the exchange rate, are their first line of defense against external shocks. We expect this trend to continue and the INR to appreciate slightly in 2024. However, once there is clarity around the Fed's rate cuts, the impetus to allow the Rupee to appreciate could be greater.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
