Credit Agricole expects rupee at 52 by end-2013
Reuters Markey Eye - Credit Agricole expects the rupee to strengthen to 52/dollar by the end of 2013, with the currency trading at relatively attractive valuations in REER terms and having priced in "many of the fundamental problems it faces."
Key imbalances in India's economy, including the current account deficit, will gradually diminish next year, says the brokerage.
However, risk-adjusted returns will be "less impressive" given the relatively high volatility in the USD/INR, it adds.
INR will also not benefit much from improvements in risk appetite given a "very low" correlation with risk appetite, Credit Agricole says.
USD/INR has been more sensitive to gyrations in the dollar, and Credit Agricole expects a gradual appreciation in the USD index over 2013 to constrain any strong rally in INR.
- Tweet this
- Share this
- Digg this
- Canada's parliament attacked near where PM Harper was speaking
- Google launches new email service dubbed "Inbox"
- UPDATE 2-Divided U.S. SEC adopts mortgage rule, decries lax lending
- Drugmakers to join forces to make millions of Ebola vaccine doses
- Air strikes kill around 25 Islamic State fighters in Iraq - residents
India could allow commercial coal mining by foreign companies if they set up units in the country, opening the door for global giants like Rio Tinto to access the world's fifth largest coal reserves, a source familiar with the matter said. Full Article