USD/INR continues to hold within a narrow 2.5% range, between 81-83, since the start of the year. Economists at Commerzbank analyze the pair’s outlook.

RBI is content to see a relatively stable USD/INR

INR’s stability is due to the strong growth backdrop, favourable macro indicators, including moderating inflation, lower oil prices, and net equity inflows. 

RBI is content to see a relatively stable USD/INR.

We project USD/INR to hold around 82.00 by Q3 2023 and drift lower to 81.50 by end-2023 and 81.00 by end-2024.