MUMBAI, Nov 15 (Reuters) – The Indian rupee could end the year higher than earlier forecast, according to a few analysts who have reviewed their calls based on sliding dollar and improving outlook on Asian currencies following the U.S. inflation data.
The rupee, on the back of the softer-than-expected U.S. inflation data, hit a seven-week high of 80.52 per dollar on Monday. That is a more than 3% recovery from the record low of 83.29 it touched around mid-last month.
Currently, spot USD/INR was at 81.36, while the forward rate for December and March is around 81.60 and 82.04.
Bank of America now expects the rupee to be about 81 per dollar by December and at 83 by March, compared to its previous forecast of 84 and 85-levels, respectively.
BofA strategists cited significant repricing of Asian FX due to an accumulation of better-than-expected news on U.S inflation and China re-opening as they revised higher…