Do More With Reuters
Partner Services

UBS revises India rupee forecast to 40.5 by end-2008

Wed May 7, 2008 12:22pm IST
 
Email | Print | | Single Page
[-] Text [+]

MUMBAI, May 7 (Reuters) - UBS (UBSN.VX: Quote, Profile, Research) on Wednesday revised its forecast for the rupee INR=IN to 40.5 against the U.S. dollar by the end of 2008 from 37.

"With the rupee already at 41 our calendar year forecast of 37 is looking forlorn given that many fundamentals (inflation & trade) will continue to point in the other direction for some months yet," UBS economist Philip Wyatt said in a research note.

The rupee has weakened on high commodity prices, a downswing in the economy and a modestly stronger dollar, UBS said.

"In our view these factors are sufficiently strong to promote further weakness at least for the next quarter, until the U.S. enters recession and local inflation peaks out," the note said.

"Thereafter, the rupee should be able to recover," he said.

The rupee weakened past 41 per dollar on Wednesday for the first time since August and has fallen 4.3 percent so far in 2008.

UBS also changed the forecast for rupee for the end of 2009 to 38 from 35.6 earlier. (Reporting by V. Ramakrishnan; Editing by Ramya Venugopal)

Dubai Debt Fears

Villas are seen on the The Palm, Jumeirah, with Atlantis, The Palm, under construction on the breakwater (crescent), May 3, 2008.  REUTERS/Jumana El Heloueh

Banks outside the Gulf played down their exposure to Dubai debt, after fears the emirate could default and even derail world economic recovery prompted a sell-off in global markets.  Full Article | Slideshow 

India Investment Summit 2009
India Investment Summit 2009

Top executives and bankers discuss their own plans and the broader opportunities and challenges for India.  Full Coverage 

People stroll outside the Taj Mahal hotel ahead of the first anniversary of the militant attacks in Mumbai, November 24, 2009.  REUTERS/Punit Paranjpe
Investors worry about another attack

The risk of militants striking again worries investors who fear that a second attack similar to last year's Mumbai raids could shake the economy.  Full Article | Full Coverage 

Market Update

  • IndiaIndia
  • USUS
  • UKUK
  • Asia
  • Most Actives

road to Copenhagen

BLOGS

Photo
Calculated Move

Reliance aims big with $12 bln bid for LyondellBasell.  Blog 

SHOWCASE

Capital Raising
Capital Raising

Analysis - China banks' rush for billions could trip markets.  Full Article 

 
Photo
Bonus Payout

"Bonus" has become a dirty word on Wall Street.  Full Article 

 
Bubble trouble?
Bubble trouble?

With the BSE Sensex at around 17,000 points, are the Indian equity markets looking at a possible bubble?   Commentary 

 
Funding Blues
Funding Blues

A popular tactic used by Indian brokerages to raise money for rich clients is likely to be banned.  Full Article 

 
Recovery Path
Recovery Path

Indian techie logging out of downturn gloom.  Full Article 

 
Central Banks Cautious
Central Banks Cautious

Reuters tracks the policies of the world's top central banks as the debate over global economic recovery rages on.   Full Coverage 

 
Risky Proposal
Risky Proposal

Rupert Murdoch courts trouble if he blocks Google on news.  Full Article