Positioning wise, about 58 per cent of market participants believe that USD/INR is trading neutral, while 27 per cent believe the market is short.
Around 25 per cent of respondents are looking to sell the USD/INR on upticks, with 19 per cent are looking to buy the cross when it trades lower.
Most participants also expect the repo rate will be cut by 50 basis points by March 2013.
Respondents expect the 10-year benchmark yield to fall to 7.90 per cent by December and to 7.85 per cent by March, the RBS survey also shows.
Copyright @Thomson Reuters 2012