Macquarie joins the 'short USD/INR' trading calls

Tue Jan 15, 2013 3:39pm IST

An employee arranges currency notes at a cash counter inside a bank in Agartala February 18, 2010. REUTERS/Jayanta Dey/Files

An employee arranges currency notes at a cash counter inside a bank in Agartala February 18, 2010.

Credit: Reuters/Jayanta Dey/Files

Related Topics

Reuters Market Eye - The "short USD/INR" recommendations are piling up, with Macquarie the latest foreign bank to issue the call.

The impact of expected rate cuts on economic growth and continued government policy reforms are turning analysts more optimistic about the rupee.

"We acknowledge India's lingering longer term risks from the twin fiscal and current account deficit," Macquarie writes on Tuesday.

"But for the short term, we are of the view that the rupee could benefit from the reform measures and a strong demand for EM equities, even as direct investment inflows begin to rebound," it adds.

Macquarie says the current bounce in USD/INR is an opportunity to go tactically short via 3-month NDF as policy reforms start to pay off via capital inflows.

The bank sets its target at 52.18, with a stop loss at the spot reference of 55.46 spot.

Westpac, Credit Agricole have recently issued short USD/INR calls.

(Reporting by Subhadip Sircar)

FILED UNDER:

REUTERS SHOWCASE

2015: India Outlook

2015: India Outlook

India in 2014: A dream run for markets.  Full Article 

Funding Woes

Funding Woes

Co-founder of SpiceJet seeks time to finalise rescue.  Full Article 

Flying Back on Course

Flying Back on Course

The inside story of the new Airbus A350 jet.  Full Article 

Oil Price Forecast

Oil Price Forecast

Oil prices likely to rebound in second half of 2015: poll  Full Article 

Deal Talk

Deal Talk

China's private sector suitors to drive Asian M&A deals in 2015.  Full Article 

Property Tycoon

Property Tycoon

Wang Jianlin, China's property tycoon, finds golden path to billions.  Full Article 

Cybersecurity

Cybersecurity

Internet outage seen in N. Korea amid U.S. hacking dispute.  Full Article 

Reuters India Mobile

Reuters India Mobile

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