INR is trading at "attractive fundamental levels," says Credit Agricole, in rare positive call amid a recent slew of analyst warnings about the currency.
Rupee has seen significant REER depreciation over the past eight months, which should allow India's current account position to stabilise in coming quarters, says the report.
The delay of GAAR also "bodes well" for foreign investors' purchase of Indian assets, Credit Agricole says.
"These factors make the currency fundamentally attractive and recent positive policy moves suggest that the timing to buy the INR looks right," says Credit Agricole.
Credit Agricole expects spot USD/INR to fall to 50 by year-end, currently 53.54/55.
Bank recommends selling 6-month USD/INR NDF at 55.17, with a target at 49.65, and stop loss at 57.93.
Souce : economictimes.indiatimes.com