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
- UPDATE 1-Putin foe Khodorkovsky says Russia is lying about Ukraine
- Missing Malaysian jet may have disintegrated in mid-air - source
- UPDATE 2-Interpol probes more suspect passports from missing flight
- UPDATE 3-Putin defends Crimea's decision to hold referendum
- UPDATE 4-William Clay Ford Sr., grandson of pioneer automaker, dies at 88
Officials investigating the disappearance of a Malaysia Airlines jetliner with 239 people on board suspect it may have disintegrated in mid-flight, a senior source said on Sunday, as Vietnam reported a possible sighting of wreckage from the plane. Article | Exclusive