Westpac says rupee likely to enjoy positive start to 2013
Reuters Market Eye - Westpac says the rupee could enjoy a positive start to 2013 as the recent rebound in factory output, PMI data, along with equity market resilience is pointing towards a better growth environment for India through first half of 2013.
"Combined with a likely RBI rate cut in the early part of Q1 and we suspect the market will feel more comfortable in a rebound in growth," says Westpac in a note.
Any rate cut will encourage further capital inflows, and will provide positive back drop for USD/INR view of 53.8 for end March, the note says.
January has been a historically much better month for Asian currencies compared with May, June and August, says Westpac. In fact, historical data shows INR has the best mean return for January (0.83 percent), followed by THB and IDR.
The RBI is unlikely to curb any INR strength unlike other Asian peers. Any jump in USD/INR between now and end of the year can be viewed as an opportunity to sell, it says.
- Tweet this
- Share this
- Digg this
- UPDATE 8-Dallas Ebola patient vomited outside apartment on way to hospital
- Boxer Sarita Devi faces action after refusing medal at Asian Games
- Appointment of Arvind Subramanian as chief economic adviser hits Modi hurdle
- Putin says Russia wants to move to national currencies in trade
- China tells foreign countries not to meddle in Hong Kong
BACK IN JAIL
Subrata Roy, the jailed chief of India's Sahara conglomerate, is back in a cell after living in a makeshift prison office for two months as he tried to negotiate the sale of his luxury hotels, a jail official said. Full Article
Appointment of Arvind Subramanian as chief economic adviser hits Modi hurdle. Full Article
Diageo bars United Breweries from appointing independent director at United Spirits. Full Article