INR: Downside Pressures To Prevail In H208

June 2008 | Currency Forecast

The Reserve Bank of India (RBI) appears eager to defend the rupee at INR43.00/US$, which is a key short-term support level. A break through this would take the rupee into a weaker trading range, with six-year trendline support existing at INR45.80/US$. For now, though, we think the rupee can hold steady at its present level. In the event of a return of confidence, the rupee would face short-term resistance at INR42.10/US$, although significant gains beyond this appear unlikely given India's adversities.

If you would like to subscribe to Emerging Markets Monitor and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to Emerging Markets Monitor please click on the trial link below.