The Indian rupee strengthened on Tuesday as a fall in crude oil prices bolstered sentiment on the currency, with analysts also paring back their expectations for the pace of rupee depreciation after policymakers unveiled measures to draw dollar inflows.
Goldman Sachs sees the central bank and government measures limiting depreciation pressure on the rupee and has pushed forward its rupee forecast of 97 per dollar from 3 months to 12 months. MUFG reckons that the local currency could trade around 94 by end of the September quarter, compared to 95.80 earlier.
