Goldman pitches options play on Indian rupee

Goldman Sachs' sales and trading desk is recommending an options play on the Indian rupee that will pay off if the South Asian currency rallies to 83 per US dollar over the next nine months.

- NIMESH VORA

The call — effectively a bet on a 3% appreciation in the rupee from its current level of 85.50 - is underpinned by India's improving macro-economic fundamentals, a revival in foreign inflows, lower oil prices, and the potential for a US-India trade deal.

The rupee has lagged behind its Asian peers this year, showing little response to the dollar index’s more than 9% decline.