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Axis Bank says USD/INR may require further rupee weakness

Axis Bank assesses that the rupee may need to weaken further to match shifting trade fundamentals and weaker AI productivity gains, based on a fair-value model using domestic and external conditions.

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The Indian rupee may need to weaken further to align with shifting trade fundamentals and relatively weaker productivity gains from AI, according to an Axis Bank assessment based on a model that estimates the currency’s fair value from external and domestic economic conditions.