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:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Moody's on Inflation

Moody's on Inflation

Persistent inflation hurting India's sovereign ratings - Moody's  Full Article 

Carmichael Project

Carmichael Project

Adani buys Australia coal mine royalty rights from Linc for $145 million  Full Article 

GDP Preview

GDP Preview

Economy likely grew faster in June quarter: Reuters poll.  Full Article 

India-Japan Meet

India-Japan Meet

Modi eyes breakthrough nuclear pact on Japan trip   Full Article 

Monetary Policy

Monetary Policy

BofA says RBI may cut rates by 75-100 bps starting early 2015  Full Article 

Road to IPO

Road to IPO

Mega-IPO to rekindle the 'bromance' behind Alibaba's rise  Full Article 

Reuters India Mobile

Reuters India Mobile

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