Live news , top stories, corporate news, company news, sector news, economy news, results analysis news, ceo interviews, fund manager interview, advisor interview, market news, bazaar talk, hot stocks news, ipo news, commodities news, mutual fund news, insurance news, news wire
21 December, 2014 10:50 IST
Expect USD-INR to remain range bound but volatile: StanChart
Source: IRIS | 29 Jan, 2013, 06.23PM
Comments  |  Post Comment

The positive policy mix-with the RBI's pro-growth stance complementing the government's fiscal consolidation efforts-is likely to underpin the positive turn in investor sentiment towards India since late 2012. However, the key question is whether foreign inflows will be enough to plug India's large external financing gap.

Portfolio inflows to Indian markets totalled USD 14 billion between Sept and Dec, 2012, up 11.2% y/y, but this fell significantly short of the USD 76.5 billion trade deficit over the same period. While the government has stepped up its efforts to curb the trade deficit, primarily by increasing import duties, the impact of these measures is unlikely to be felt immediately, according to Standard Chartered Bank.

''Thus, the fundamental backdrop remains mixed for the Indian rupee (INR). As such, we expect USD-INR to remain rangebound but volatile until there are discernible signs of a sustained improvement in India's balance of payments,'' the bank said.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.

Comments Post comment 
 Post Comment
Name Email
Comment
Security Code type    into this box
Related Articles
CRISIL assigns fundamental grade 4/5 to JSW Steel - 19-Dec-2014 16:18
Emkay maintains `Buy` on L&T - 19-Dec-2014 15:43
Panacea Biotec join hands with Rising Pharmaceuticals - 19-Dec-2014 11:59
Petron Engineering gets LoI for contract worth Rs 240 mn - 19-Dec-2014 11:49
Dr Reddy's closes acquisition of Habitrol brand from Novartis - 19-Dec-2014 11:29
JET Airways introduces 12 additional domestic frequencies - 19-Dec-2014 10:56
Balaji Telefilms joins Indus Media to enter American television market - 19-Dec-2014 10:38
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer