Kotak Sees USD/INR at 94 as $40 Billion Inflows Support Rupee
Updated
Updated · Devdiscourse · Aug 3
Kotak Sees USD/INR at 94 as $40 Billion Inflows Support Rupee
3 articles · Updated · Devdiscourse · Aug 3
Summary
$40 billion in FCNR(B) inflows has already arrived, and Kotak Securities says more foreign money could push USD/INR from near 95 toward the key 94 level.
FPI inflows of about $3 billion-$4 billion a month and Brent holding in the $80-$90 range are seen as the main conditions for further rupee strength.
A break past 94 could trigger exporter hedging and pull USD/INR toward 92, while Kotak says the RBI is unlikely to buy dollars aggressively at current levels near 95.
Banerjee said India still needs a $60 billion-$70 billion cushion by September because West Asia risks, Strait of Hormuz uncertainty, Fed policy and yen-market volatility could disrupt capital flows.