Economy / India
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INR: Downside Pressures To Prevail In H208
June 2008 | Currency ForecastSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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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.