USD/INR: Positive view on Indian Rupee in the year ahead – MUFG

In June, the Indian Rupee reversed some of its losses from the previous month. Economists at MUFG Bank discuss INR outlook.

India’s current account deficit to widen from the March 2024 quarter

We expect India’s current account deficit to widen from the March 2024 quarter given the improvement in domestic demand we are forecasting, but to ultimately remain manageable at around 1-2% of GDP. 

Portfolio flows have improved. 

We maintain a positive view on INR in the year ahead.

USD/INR – Q3 2023 81.50 Q4 2023 80.50 Q1 2024 79.50 Q2 2024 79.00