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Goldman Sachs sees rupee rising 10%
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March 03, 2009 18:40 IST
The Indian rupee will bounce from its record low level of close to Rs 52 against the greenback and will gain about 10 per cent in 12 months once overseas borrowings resume, Goldman Sachs has said.

"Over a 3-12 month horizon, we expect the rupee to strengthen as deleveraging pressures ease. Our 3-6 and 12-month dollar/rupee forecasts are at 50.5, 48.0 and 46.9 respectively," the global financial services firm said in a research note today.
The rupee has weakened 6.7 per cent against the dollar since mid-February, partly due to factors which are common to the region including continuation of deleveraging forces, dollar strength and worsening economic data, Goldman said.
The depreciation in Indian rupee has also been due to factor-specific to India. Goldman said these are weak sentiments on the back of a very high fiscal deficit and the recent S&P downgrade of India's sovereign outlook to "negative".
"We expect the rupee to be weak on a 3-month horizon," Goldman Sachs said.

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