INR gains versus USD could be limited: Barclays

Quotes from Barclays Capital:

-The decline in oil prices has been a major boon for India, driving improvements in the fiscal and current account balances, while helping to facilitate the recent policy easing by the RBI.

-The INR's high yield remains attractive, while improving economic and political fundamentals should also sustain capital inflows. However, INR gains versus the USD could be limited in the face of a broadly stronger USD and given official resistance to currency strength.

-We would look to re-enter a long INR trade versus the EUR or versus other low yielding currencies.