Foreign Exchange Reserves Being Rebuilt, As Indian Rupee Holds Steady Against A Depreciating U.S. Dollar: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.  

Over the past five weeks, Indian rupee has held steady against the depreciating U.S. dollar, thereby enabling Indian rupee to give up all its gains on euro and virtually all its year-to-date gains against Korean won, Chinese yuan and British pound sterling – while foreign exchange reserves rebounded by $27.1 billion.

We expect these trends to persist through March 2023, as the seasonal improvement lowers the quarterly current account deficit to below 1% of gross domestic product in Q1 CY23.

The CAD will be fully funded by net foreign direct investment inflows, while fairer equity valuations should allow modest foreign institutional investor net inflows into Indian equities in Feb-March 2023.

We expect Indian rupee to end FY23 at 82.5/U.S. dollar, and foreign exchange reserves to rebound to $600 billion in March-23.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.