September 17, 2012 / 5:03 AM / 5 years ago

HSBC raises rupee forecast to 52/dollar

MUMBAI (Reuters) - HSBC raised its forecast for the Indian rupee at the end of December this year to 52 to a dollar from 57 previously, citing the government’s recently announced reform moves as well as the Federal Reserve’s quantitative easing.

Indian currency of different denominations are seen in this picture illustration taken in Mumbai April 30, 2012. REUTERS/Vivek Prakash/Files

“Additional reforms may be forthcoming, which in turn could quell concerns over a possible downgrade for the sovereign. If so, we would likely see additional room for the INR to strengthen,” the bank said in a note Monday.

It expects the rupee’s gains to persist through next year with a end-December 2013 target of 49 to the dollar versus 57 previously.

Reporting by Subhadip Sircar; Editing by Rafael Nam

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