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Rupee to remain in the range of 70-72 against dollar this year, says ICICI Bank

Updated : January 03, 2019 12:35 PM IST

The Indian rupee is expected to be in the range of 70-72 against a US dollar for the entire year, said B Prasanna, head of global markets group at ICICI Bank.

The rupee fell sharply on Wednesday, posting its biggest single session fall against dollar since December 3. The currency ended at 70.17 against the greenback.

“For the rupee, I would say that the medium-term bullishness still remains because of the fact that oil has fallen dramatically from the $80 per barrel to the $50 per barrel range notwithstanding yesterday’s rise of 3-4 percent. So that is definitely giving a slight boost to the currency but at the same time, I think RBI will not let it appreciate too much and also the emerging market (EM) scare, which is happening. So I guess the range would be 70-72 for the entire of the next year,” said Prasanna.

“I think yields will not go up too much because of the buying that happens from the Reserve Bank of India (RBI), but they will wait and watch to see what kind of space the government makes from the fiscal side if they do announce farm loan kind of a package,” he added.

“From the bond yield perspective, I think pretty much 7.25-7.45 kind of a range should hold true for the next one month or so, till the time the budget is announced,” said Prasanna.
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