"Over a 3-12 month horizon, we expect the rupee to strengthen as deleveraging pressures ease. Our 3-6 and 12-month dollar/rupee forecasts are at 50.5, 48.0 and 46.9 respectively," the global financial services firm said in a research note today.
    
The rupee has weakened 6.7 per cent against the dollar since mid-February, partly due to factors which are common to the region including continuation of deleveraging forces, dollar strength and worsening economic data, Goldman said.
    
The depreciation in Indian rupee has also been due to factor-specific to India. Goldman said these are weak sentiments on the back of a very high fiscal deficit and the recent S&P downgrade of India's sovereign outlook to "negative".
    
"We expect the rupee to be weak on a 3-month horizon," Goldman Sachs said.