Robust growth and sound monetary policy should support the Indian Rupee (INR) in the coming months, in the opinion of economists at Commerzbank.

RBI is expected to tighten policy further

“Tight monetary policy, an expected decline in inflation, and robust growth should support the Rupee in the coming months.”

“We expect a stable to lower USD/INR rate of 81.50 at year-end 2023.”

“RBI is expected to tighten policy further by another 25-50bp in 1H 2023. The central bank is projecting inflation to dip below 6% in Q1 2023 and to hold at around 5% in 2023.”