The rupee is likely to rise to 54 or higher by December and to rise further to 53 by March 2013, according to an RBS survey of over 130 market participants.
Positioning wise, about 58 pct of market participants believe that USD/INR is trading neutral, while 27 pct believe the market is short.
Around 25 percent of respondents are looking to sell the USD/INR on upticks, with 19 percent are looking to buy the cross when it trades lower.
Most participants also expect the repo rate will be cut by 50 bps by March 2013.
Respondents expect the 10-year benchmark yield to fall to 7.90 percent by December and to 7.85 percent by March, the RBS survey also shows.