India’s inflation appears to have peaked. Therefore, the Indian rupee could be ready to race higher, according to economists at Scotiabank.

Relief from falling commodity prices

“We believe falling commodity prices could improve the nation’s external balance while bringing the nation’s inflation under control.” 

“The INR will rally in a sustainable way when foreign investors shift their focus to India’s growth prospect from the nation’s inflation outlook.”

“USD/INR will likely trade between 79 and 80 with downside risks.”