INR has been the most stable currency in Asia-Pacific this year, but strategists at UBS, a Swiss Investment Bank, predicted that the value of Indian rupee might depreciate to 77 per Dollar by the end of 2021, and even further, to 79.5 by September 2022. “We see the year-to-date INR stability as short lived,” USB said.
The Swiss bank pointed out that the current account balance of India so far has deteriorated since the previous year. India showed a current account surplus, i.e.. exports were greater than imports, last year. But, was unable to hold on to the trend in 2021.
On the contrary, the British investment bank HSBC is of the opinion that the INR might hold up relatively well in the coming year(s) with mere fluctuations in the exchange rate. The bases of their opinion about the rupee has been the uniform inflow of foreign investments in India. Funds have been flowing-in in the from of both FDI’s(Foreign Direct Investments) and FII’s(Foreign Institutional Investments).
The current rate of exchange is about 73.08 INR per USD. The exchange value of INR has remained between the range of 72-75 per dollar, which suggests that the RBI has done a very good job of maintaining the volatility rate.
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