HSBC raises rupee forecast to 52/dollar

HSBC raised its forecast for the Indian rupee at the end of December this year to 52 to a dollar from 57 previously, citing the government's recently announced reform moves as well as the Federal Reserve's quantitative easing.

"Additional reforms may be forthcoming, which in turn could quell concerns over a possible downgrade for the sovereign. If so, we would likely see additional room for the INR to strengthen," the bank said in a note on Monday.

It expects the rupee's gains to persist through next year with a end-December 2013 target of 49 to the dollar versus 57 previously.