USD/INR to head higher towards 84.00 by mid-2024 before easing back to 83.50 by end-2024 – Commerzbank

USD/INR has held within a narrow 3% range since the start of the year, between 80.50 and 83.50. Economists at Commerzbank analyze the pair’s outlook.

USD/INR to hold steady at around 83.00 by year-end

We project USD/INR to hold steady at around 83.00 by year-end. The main risk factor will be even higher Oil prices which weigh on INR given that India is a major Oil importer. 

We could see the pair heading higher towards 84.00 by mid-2024 before easing back to 83.50 by end-2024.