Rupee Outlook: Why The Indian Currency May Stay Under Pressure Amid Global Capital Flows

The rupee could remain under pressure as global capital continues to gravitate towards US equities and other major growth markets. Prateek Ancha, Chief Economist, Axis Capital, explains why significant rupee appreciation may remain difficult and why India needs to attract more debt inflows to support the balance of payments. The discussion also covers potential bond index inclusion, FCNR flows and the disconnect between strong Indian macro fundamentals and market performance. Meanwhile, Rumki Majumdar, Economist, Deloitte, expects two more 25 basis points rate hikes, taking the policy rate to 5.75%, with upcoming CPI data likely to determine the timing.