USD to be at Rs. 315-345 by end-June, with depreciation expected in Q3 and Q4

Frontier Research expects the Dollar (USD) to be in the Rs. 315-345 range by end-June while expecting depreciation in the third and fourth quarters.

They expect the import demand to gradually grow from the $ 1.4 billion month average in 2023 to around $ 1.5 billion month average in 2024, supported by an increase in private sector credit growth to at least 5-10% y-o-y in 2024 and a pickup in government expenditure – including on capex – on the back of a higher-than-expected improvement in revenues.