Roy Paul, deputy general manager at Federal Bank Ltd. in Mumbai, comments on the outlook for India’s rupee.
Three-month non-deliverable forwards for the currency gained 0.4 percent to 44.94 per dollar as of 11:34 a.m. in Singapore, according to data compiled by Bloomberg. The contracts reflect bets the rupee will weaken 1.5 percent from the spot rate of 44.26.
“Of late, the capital inflows have been huge and that is positive for the rupee. There is a global acceptance that India is a growing economy so that is taking root in the minds of investors.
“Oil prices at the current level are a dampener. Depending on the Gulf region and what happens there, the high oil price is a negative for the currency.
“The rupee will be around 45 against the dollar in three months depending on the capital inflows and developments in the Gulf.”
To contact the reporter responsible for this story: Khalid Qayum in Singapore atkqayum@bloomberg.net
To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net
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