HALISTER1: Indian Rupee May Continue Seasonal Weakness This Month, ANZ Says

Indian Rupee May Continue Seasonal Weakness This Month, ANZ Says

(Bloomberg) -- INR is typically one of the weakest performing currencies in May having weakened in 12 out of last 16 years, Khoon Goh and Rimi Sen, strategists at ANZ, write in note today.
  • Says unusual absence of auspicious wedding dates in May this year may not be sufficient to prevent INR weakness from repeating; typically weddings leads to rise in gold demand and associated spending
  • INR’s close correlation with the equity market means it is vulnerable to signs of domestic slowdown and any reassessment of US Fed rate hikes
  • With the currency on the rich side, INR’s diminishing positive reaction to rate cuts and slow reform progress also pose risks to the currency
  • Maintains USD/INR forecast at 68.5 by end-2016
  • USD/INR steady at 66.5625; pair has gained 0.3% so far this month
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Khoon Goh (Australia & New Zealand Banking Group Ltd)

To de-activate this alert, click here

UUID: 7947283