Rupee between mild gains, sharp falls: Deutsche
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)
- Tweet this
- Share this
- Digg this
- Bangalore-bound Malaysian plane lands safely after landing gear scare
- Bangalore-bound Malaysia Airlines plane turns back after tyre burst on takeoff
- India passes halfway mark in election with BJP gaining strength
- Supreme Court allows iron ore mining in Goa with upper limit of 20 million tonnes
- Rupee sees worst single-day fall in over a month
Iron Ore Mining
The Supreme Court lifted a 19-month old ban on mining in Goa, the top iron ore-exporting state, on Monday, a move that will put more pressure on global prices although it capped annual output in the state at 20 million tonnes. Full Article | Quote
Bangalore-bound Malaysia Airlines plane turns back after tyre burst on takeoff Full Article