Economy

Indian rupee to appreciate to Rs 82–82.50 in FY25: CARE Ratings

The Indian rupee is expected to appreciate to about Rs 82–82.50 in FY25 while in the near term, it will trade between Rs 83-83.50 against the US dollar, a top economist with CARE Ratings said.

According to Chief Economist Rajini Sinha, the Indian rupee is expected to trade between Rs 83-83.50 in the near term, though geopolitical tensions may pose a potential risk.

“We expect INR to appreciate marginally during FY25 to about Rs 82-82.50, supported by India’s strong fundamentals in terms of healthy economic growth of around 7 per cent, a comfortable CAD (current account deficit) of around 1 per cent of GDP (gross domestic product), and an expected surge in FPI (foreign portfolio investment) inflows post India’s inclusion in global bond indices,” she said.

Sinha said while concerns regarding the Iran-Israel tensions have eased, a strong dollar continues to weigh on emerging market currencies including the Indian rupee.

She said in the year so far, the rupee remains a top performer compared to some emerging markets and Asian peers, likely supported by RBI interventions.

Markets have trimmed their Fed rate cut expectations following robust economic data and higher-than-expected inflation in the US. Moreover, recent commentary from Fed officials has been hawkish, Sinha said.

Market attention is now focused on the release of US GDP data on Thursday and personal consumption expenditure inflation data on Friday, she said. The US economy is expected to show resilience. Headline inflation is expected to inch up slightly while core inflation is expected to show some moderation.

Any data surprises may cause market participants to revise their US Fed rate cut bets accordingly, Sinha said.

IANS

Recent Posts

‘Political space given to extremist forces’: EAM Jaishankar on attacks on Hindu temples in Canada

External Affairs Minister, S Jaishankar expressed concerns about the recent attacks on the Hindu temples…

36 mins ago

Coast Guard Chief S Paramesh calls on Navy Chief Admiral, deliberates on ICG’s operational readiness

Indian Coast Guard Chief Director General S Paramesh has called on Indian Navy Chief Admiral…

49 mins ago

North Korea launches short-range ballistic missiles ahead of US elections

Just a few hours ahead of the presidential polls in the United States, North Korea…

58 mins ago

Brampton: Thousands take out solidarity rally against attacks on Hindu temples in Canada

Over a thousand Canadian Hindus gathered outside the Hindu Sabha Mandir in Brampton, Canada on…

2 hours ago

Jaishankar meets Australian counterpart Penny Wong for Foreign Ministers’ Framework Dialogue in Canberra

External Affairs Minister S Jaishankar was welcomed by Australian Foreign Minister, Penny Wong, at the…

2 hours ago

Israel targets Hezbollah’s intelligence headquarters in Syria

Israel on Monday targeted Hezbollah's intelligence headquarters in Syria. Sharing a post on X, the…

2 hours ago