Rupee to rise to 45 by end 2009: Barclays

At 2:27 p.m,it was at 47.51/52 per dollar.

“The Reserve Bank of India’s exchange rate policy can accomodate significant appreciation as concern shifts to inflation from growth,” Sailesh Jha,senior regional economist at Barclays Capital,said.

Barclays expects growth in 2009/10 and 2010/11 at 5.5 percent and 6 percent respectively “with the risks tilted to the upside by around 150 basis points.”

It expects the central bank to move to a liquidity withdrawing cycle from the third quarter of 2009 once economic growth momentum picks up.