BLBG: Buy Indian Rupee on Rate Outlook, Fund Inflows, Wells Fargo Says
By James Regan
Feb. 4 (Bloomberg) -- India’s rupee will strengthen in the next 12 months as interest rates are raised to tame inflation and overseas funds add to their holdings of the nation’s assets, according to Wells Fargo Co.
Rate increases “should provide a positive backdrop for the rupee going forward,” Vassili Serebriakov, a currency strategist at Wells Fargo in New York, wrote in a research note dated yesterday. “At the same time, despite occasional jitters, global investor sentiment should support sufficient foreign capital inflows to cover the current account deficit.”
Serebriakov forecast the rupee will climb to 43.50 per dollar in 12 months, 5.7 percent higher than yesterday’s close of 45.98 in Mumbai.
To contact the reporter on this story: James Regan in Hong Kong at jregan19@bloomberg.net
