Citi, ING see rupee rebounding on US deal hopes

The rupee could strengthen to 87-88 per dollar if India reaches a deal with the US to lower tariffs, according to Citigroup Inc.

- BLOOMBERG

The market expects US tariffs on Indian exports to be cut to 15%-20% from about 50% currently, says Aditya Bagree, head of markets at Citi India. The demand-side math for Indian bonds “has been tough” this year as appetite for debt from pension and insurance firms has been hit by tax and regulatory changes, he said.

Economists at ING Bank NV also said the rupee is poised for a rebound as trade hopes rise.