USD/INR Price News: Indian rupee steadies around 74.50 even as Goldman Sachs ups growth forecast

The Indian rupee remains unimpressed by the upward revision to India’s 2020 GDP forecast by Goldman Sachs.

In its latest research note, analysts at Goldman Sachs said that India's real gross domestic product (GDP) is expected to contract by 10.3% in FY21 vs. its September forecast of a 14.8% contraction.

“India's real GDP will rebound to 13% in FY22 above consensus expectations of 10.9%, aided by a broad-based availability of a covid-19 vaccine,” the US investment banking giant noted.

On the future path of monetary policy in India, Goldman Sachs said that the easing inflationary pressures could create more room for the RBI to ease policy rates further. "We expect RBI to cut policy rates by another 35 bp early next year."

USD/INR reaction

USD/INR keeps its range play intact around mid-74s, lacking a clear directional bias, at the time of writing.

The US dollar remains on the front foot amid escalating risks of the coronavirus surge to the global economic growth, as markets look past the promising vaccine results.

• USD/INR Price News: Indian rupee sellers battle weekly resistance line around mid-74.00s