INR likely to depreciate moderately against U.S. dollar, USD/INR to trade around 71.50 by 2017-end

The USD/INR currency is not expected to elude the strength of U.S. dollar. However, solid depreciation of the Indian rupee is rather unlikely as the Reserve Bank of India is taking cautious actions and would be monitoring the attractiveness of the currency closely, noted Commerzbank in a research report.

Furthermore, the Indian economy is expected to stay strong. There is possibility that the Indian rupee would moderately depreciate against the U.S. dollar as has been the case in the last few years. The USD/INR pair is likely to trade at around 71.50 by the end of 2017 and reach around the levels of 73.50 by the end of 2018, according to Commerzbank. This signifies that the Indian rupee would continue to be roughly unchanged as compared to the currencies of its Asian neighbours, added Commerzbank.