Rupee to appreciate back to 52 by Dec; 49 by 2013-end: HSBC
Mumbai: The rupee is likely to recover to 52- mark against the US dollar by the end of this December and may recoup to the 49 level to the dollar by the end of next calendar year, HSBC said Thursday.
"We expect the rupee to be at 52 level to the dollar by this year end and at 49 by the end of 2013," HSBC global forex strategy head David Bloom told reporters here.
The rupee today closed down by 16 paise at 54.36 against the dollar.
Expalining the rationale behind the expected upward movement, Bloom said the local currency will witness a rise mainly on the back of weakness of the dollar and not any major domestic factor.
"The movement in the rupee will be mainly due to weakness seen in the dollar," Bloom said.
On the global economic scenario, HSBC Group Economist and Global Head (Economics and Asset Allocation Research) Stephen King said while the situation in the euro zone has improved in the recent past, recovery is not on the expected line in the US after the third round of the stimulus package.
King, however, added that the impact of the sovereign debt crisis in Europe is now showing its impact on the Asian and Latin American nations as well.
"The current problems of the Western economies are putting pressure on Asian and Latin American countries through weakness in their exports," King said.