USD/INR has been back near the 80 level. Economists at Société Générale expect the Reserve Bank of India (RBI) to intervene at key levels, providing an opportunity to buy the pair on dips.

Buy the dips in USD/INR

“The RBI is likely to intervene at key levels such as 80; however, we believe that such interventions would provide opportunities to buy on dips in the USD/INR, rather than establish sustained INR strength vs the USD.”

“Among Asian high yielders, on a relative value basis we prefer the IDR over the INR, and our short INR/IDR position is up by 2% since initiation.”