USD/INR to test the lower end of the 80-82 range – Commerzbank

USD/INR has dropped to near 81.00. Economists at Commerzbank expect the pair to drift towards the lower end of the 80-82 range.

RBI to persist with more rate hikes

“We expect RBI to persist with more rate hikes albeit at a slower pace than the 50 bps hikes of the past three meetings. RBI has hiked by 190 bps so far this year from May to 5.90%.”

“We look for another 30-40 bps hike on 7 December to 6.20-6.30%. This should provide some support for INR along with the softer USD tone.”

“We see room for USD/INR to drift towards the lower end of the 80-82 range near term.”