Exchange rate (USD-INR)


  • The USD-INR currency pair is expected to reach 71.67 by end of this financial year.
  • The major factors to determine the exchange rate would be lower oil price and fed rate.
  • The Fed has expanded its balance sheet by $6 trillion in between March and April, 2020.
  • Due to weak economic outlook, AE central banks are expected to keep monetary policy accommodative.
  • Further, AEs QE program will unleash money to the emerging markets including India.
  • In contrast, higher fiscal deficit and inflation rate is expected to undermine the domestic currency.
  • Due to COVID-19 situation the USD-INR has reached 76. However, we are expecting the domestic currency to regain its strength once the situation normalized.