USD/INR to reach 15,200 by Q4 before moving down to 15,000 and 14,750 in Q1 and Q2 next year – MUFG

USD/IDR reached a low below 14,700 on 12th August but was soon rebounding again with dollar strength reviving. Economists at MUFG expect the pair to edge higher till the end of the year before moving back down in 2023.

Further rate hikes to bring the 7D RR to 5.00%

“We expect another 75 bps of rate hikes for the rest of the year and another 50 bps in 2023, to bring the 7D RR to 5.00%. However, this may not offset the USD strength from aggressive Fed rate hikes.”

“We forecast USD/IDR at 15,100 and 15,200 by Q3 and Q4, moving down to 15,000 and 14,750 in Q1 and Q2 next year.”