USD/INR has held mostly within a narrow 81-83 range since the start of the year. Economists at Commerzbank see the pair rather at the lower end of this trading range in the medium term.

Supported by robust domestic sector

“It seems RBI is content to see a relatively stable USD/INR for now.”

“Supported by strong growth, we see USD/INR rather at the lower end of the 81-83 trading range in the medium term.”

“Growth is projected to moderate this year amid the weaker global backdrop but still post a healthy 6% thanks to robust domestic demand.”

Source: Commerzbank Research