Rupee between mild gains, sharp falls: Deutsche

Mon Jan 14, 2013 5:42pm IST

An employee uses an electronic machine to check a rupee note inside a bank in Allahabad December 16, 2011. REUTERS/Jitendra Prakash/Files

An employee uses an electronic machine to check a rupee note inside a bank in Allahabad December 16, 2011.

Credit: Reuters/Jitendra Prakash/Files

Related Topics

REUTERS - Rupee will oscillate between "mild appreciation in good times and sharp depreciation in bad times" unless the twin deficits are addressed through a return to investment-led growth and reduced inflation, says Deutsche Bank.

The bank expects the rupee to appreciate mildly towards 52-53 in 2013.

Deutsche says there may be "considerable" volatility in its forecast, with the rupee gaining if capital flows see more momentum, or if reforms or the economy surprises positively.

However, the rupee could see weakness should there be a jump in commodity prices, or if flows lose steam on the back of weak exports and strong imports, Deutsche says.

The bank adds RBI must look at re-building its FX reserves if inflows remain strong as the economy would benefit from a stable exchange rate.

(Reporting by Swati Bhat)

FILED UNDER:
  • Most Popular
  • Most Shared

Insight

REUTERS SHOWCASE

Border Talks

Border Talks

India names Ajit Doval as special envoy for China border talks.  Full Article 

WTO Deal

WTO Deal

U.S. seeks to step up India trade talks  Full Article 

Phone Masts

Phone Masts

American Tower to buy Bharti Nigeria phone masts for $1.1 billion  Full Article 

Infrastructure Plan

Infrastructure Plan

India targets private cash to build railways to its ports.  Full Article 

Shadow Banking

Shadow Banking

Reserve Bank planning more measures for NBFCs.  Full Article 

Auto Sector

Auto Sector

Hyundai Motor, Kia Motors lift 2014 global sales target on China, emerging markets  Full Article 

Oil Prices

Oil Prices

Some fund managers see oil falling to $60 without OPEC cut.  Full Article 

Project Shelved

Project Shelved

Jindal Steel shelves $10 bln project after coal setback.  Full Article 

Market Eye

Market Eye

Sensex, Nifty rise to record after China, ECB stimulus boosts risk appetite.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage