Citigroup (C) Bullish On Indian Rupee (INR) In The Medium Term

In the back drop of a strengthening dollar against the Indian Rupee (INR), here is a recommendation from Citigroup (NYSE: C).

According to Reuters, Citigroup Inc.’s Indian Analysts Chintan Gandhi and Subodh Kumar are bullish about the medium term prospects of Indian Rupee through non-deliverable forwards (NDFs). They felt that Indian Rupee was the cheapest Asian Currency after the Korean Won (KRW).

The analysts set a target of 44.70 against the dollar and set a stop at 48.25. The spot is at 46.89. As there is a likelihood of an increase in inflation, India’s Central Bank, The Reserve Bank of India (RBI) may increase the interest rates. Citigroup feels that that may have an impact on the stock market. This may also indirectly affect the Rupee. The analysts recommended selling 3 month NDFs at 47.05.