Rupee likely to leave its worst behind; inflows crucial in 2023: Analysts

India's current account deficit widened to a more than nine-year high in the July-September quarter on the back of high commodity prices, which pushed up the trade deficit, data from RBI showed

The Indian rupee is likely to hold in a tight range in the early part of 2023 but the worst is possibly behind it, said traders and analysts.

The local currency has hovered close to its lifetime lows through most of December, but investors said it was not a cause for concern as they pinned hopes on inflows into equities and debt in 2023, on a possible recession in global economies.
 

"In the next six months, the rupee should outperform, now that it has caught up with Asian peers," said Abhilash Koikkara, head of forex, Nuvama Professional Clients Group.
 

"Equity flows