MC:Rupee seen rising to 54 or higher by Dec: RBS survey
The rupee is likely to rise to 54 or higher by December and to rise further to 53 by March 2013, according to an RBS survey of over 130 market participants.
Positioning wise, about 58% of market participants believe that USD/INR is trading neutral, while 27% believe the market is short.
Around 25% of respondents are looking to sell the USD/INR on upticks, with 19% are looking to buy the cross when it trades lower.
Most participants also expect the repo rate will be cut by 50 bps by March 2013.
Respondents expect the 10-year benchmark yield to fall to 7.90% by December and to 7.85% by March, the RBS survey also shows.
