The Reserve Bank of India (RBI) is going to be under pressure to hike rates and they will turn more hawkish in June, said Ray Farris of Credit Suisse.

"If oil remains high and the dollar can hold the strength going into August, they probably would hike rates in in that month," said Farris.

The dollar index has lost a bit since Wednesday’s steep rally towards five month high of 94.16. It gave some relief to emerging market currencies

Farris said that this rally in dollar has come at a time when India looks vulnerable.

“India probably will see weak currency persist for another few weeks maybe a month or so and then the current account seasonality becomes a little bit more neutral and what really matters then is the extent which the dollar continues to rally and what happens to oil prices,” he added.

First Published:May 24, 2018 8:59 AM IST