Rupee Outlook: Can The Indian Currency Recover To 92 Against The Dollar As Oil Prices Ease?

The Indian rupee remains under pressure amid elevated crude oil prices and foreign exchange outflows. However, the currency could recover if oil prices ease and recent RBI measures help reduce demand in the open market. Manish Sonthalia, Director & CIO, Emkay Investment Managers, believes the rupee is undervalued and sees levels of 92–93 against the US dollar as a fair range, provided oil prices do not surge further. The discussion examines the impact of oil marketing companies' dollar purchases, RBI intervention, export levels and external pressures on the currency. Will easing energy costs provide the rupee with much-needed relief?