Foreign inflows are expected to boost India’s rupee, but analysts caution that the central bank’s interventions may limit gains. MUFG Bank Ltd. predicts a modest appreciation of less than 2%, while Australia and New Zealand Banking Group Ltd. foresee minimal change. The Reserve Bank of India aims to maintain stability, mindful of export competitiveness. Despite potential inflows from bond index inclusion and foreign interest in equities, the RBI’s oversight may restrain significant appreciation. Traders eye April inflation data for monetary policy clues, with expectations of a slightly stronger rupee by year-end, reaching 83 per dollar by December.
Rupee Rebound Hopes Tempered by Central Bank Caution
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