The Indian rupee was little changed at 73.0 per USD, remaining close to its strongest level since February 2020. Last week, the Reserve Bank of India held interest rates at record low levels and pledged to continue its support to the economy amid the COVID-19 crisis. The central bank's governor Shaktikanta Das said the Indian economy is set to grow and that inflation was expected to remain within its targeted range over the next few quarters. Elsewhere, concerns about the country's public finances mounted, after the government announced a fiscal deficit of 6.8% of GDP for the 2021/2022 financial year starting on April 1st. For the 2020-2021 financial year, the budget gap is seen at 9.5% of GDP, as the coronavirus pandemic lifted public expenditure and hit revenues. At the same time, investors dumped riskier assets and turned to the USD amid expectations the US economy would outperform its peers.
Historically, the Indian Rupee reached an all time high of 77.01 in April of 2020. Indian Rupee - data, forecasts, historical chart - was last updated on February of 2021.
The Indian Rupee is expected to trade at 73.21 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 74.22 in 12 months time.