ING economists expect the Indian rupee to struggle to stage a significant recovery next year.
Limited increase despite economic strength
India has bucked global trends of weakening economy and is on track to grow around 7% in 2023, and should achieve a similar growth rate in 2024.
The long-awaited turnaround of the Dollar should support the Rupee in 2024, but given the tight control that the Reserve Bank of India has exercised over the Rupee since October 2022, the currency is already possibly stronger than justified in relative to most of its counterpart currencies in the region, so we would anticipate a more modest appreciation during 2024 than that of other currencies.
We suspect that the RBI’s currency control is asymmetrical, and that it will not prevent the INR from appreciating slightly in the first half of 2024.
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.
