Rupee may plunge to 61.50 in 3 months: credit Suisse

The rupee, which has depreciated by nearly 10% in the last few months, is likely to weaken further and may touch 61.50 against the US dollar in next three months and 62/$ in the next 12 months, Credit Suisse said.

The rupee, which has depreciated by nearly 10% in the last few months, is likely to weaken further and may touch 61.50 against the US dollar in next three months and 62/$ in the next 12 months, Credit Suisse said.

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Keeping in view the recent developments in rupee, Credit Suisse said that chances of the Reserve Bank of India (RBI) cutting rates at July 30 meeting are close to “zero”.

“The depreciation of the rupee means the chance of the RBI cutting interest rates at its next meeting on July 30 is virtually zero, and indeed there is probably a higher risk of rate hikes not cuts right now, given Subbarao’s hawkish nature,” Credit Suisse said in a research note.

The rupee last week sank to an all-time low of 60.72 against dollar on heavy capital outflows and month-end dollar demand from importers.