Reuters Market Eye - Rupee could rise to 52 per dollar by end of 2013 and is Credit Agricole's top pick among the emerging markets, it says in a note.
The government winning the vote on foreign direct investment in multibrand retail will continue to help the rupee despite questions on whether the reform will be approved by the upper house and concerns about its implementation.
"The government's victory is a good sign of its ability to push through other reforms," the bank says.
Trending On Reuters
Thousands of Nepalese huddled under tents and sought scarce food and medical supplies on Monday, two days after a massive quake killed more than 3,200 people and overwhelmed authorities. Full Article | Slideshow
- Quake warnings of minutes, not hours, are possible, but pricey
- UNICEF says nearly a million children "severely affected" in Nepal
- Factbox - Foreigners in Nepal at time of deadly earthquake
- "Demons on the mountain"; survivors recall avalanche terror
- In Kathmandu Valley, quake-hit Nepalis fend for themselves