The Indian rupee continues to underperform as oil prices remain elevated. Nonetheless, economists at ANZ Bank expect INR to stabilize and forecast the USD/INR pair at 76.00 by end-2022.

RBI to utilise its large FX reserves to keep the INR stable

“We do not expect much more weakness from current levels as it will aggravate inflationary pressures. We, therefore, expect the RBI to utilise its large FX reserves to keep the INR stable at around current levels.” 

“A stable rupee will also help anchor return expectations for foreign investors amid volatile markets.”

“We forecast USD/INR at 76.00 by year-end.”