Re poised to touch 70 by year-end, say banks
The rupee breached the 68 level against the dollar for the first time since September 2013 with a selloff in equity markets triggering fears of foreign exchange outflows. While many research reports by banks are forecasting a 70 level by the year end, dealers say that the local unit could stabilize below 68 levels if there are no further upheavals in China Stock Market Trading Tips
While fall in global crude prices will offset the increase in the export bill due to costlier dollars, individuals will have to shell out more to buy foreign travel tickets and in fees for overseas education.
The rupee weakened to a 28-month low of 68.17 in morning trade but recovered on intervention by Reserve Bank of India to close at 67.96, 31paise weaker than its previous close of 67.65. According to Ashish Vaidya, head of trading at UBS said "Such global dislocations do not last and markets tend to overdo. I think the markets will stabilize from here. In that case are looking at worst at a 50 paise fall from here". He added that there were indications from the non-deliverable forward market (offshore derivative deals on rupee which are settled in dollar) that the rupee was expected to stabilize Himanshu Tiwari astrologer Blog
"The rupee may have weakened to 2013 levels but the situation is completely different from back then and the economy is in much better shape. Unlike 2013 when rupee was overvalued on a trade-weighted basis, this time the rupee has actually gained against trading partners. So today there is actually a sense of disbelief on the rupee weakening," said Harihar Krishnamoorthy, treasurer of First Rand Bank. He added that the rupee fall has been steeper than the Chinese Yuan and at present level is competitive. "Unless China capitulates, I think the rupee should stabilize and 68-69 levels should be the worst case," he said.
Rating agency Care has said that the rupee's return to 66 levels is a possibility given that current account deficit and trade deficit are expected to be well within control unlike 2013 — the last time when rupee breached the 68 level Commodity Market Trading Tips
While fall in global crude prices will offset the increase in the export bill due to costlier dollars, individuals will have to shell out more to buy foreign travel tickets and in fees for overseas education.
The rupee weakened to a 28-month low of 68.17 in morning trade but recovered on intervention by Reserve Bank of India to close at 67.96, 31paise weaker than its previous close of 67.65. According to Ashish Vaidya, head of trading at UBS said "Such global dislocations do not last and markets tend to overdo. I think the markets will stabilize from here. In that case are looking at worst at a 50 paise fall from here". He added that there were indications from the non-deliverable forward market (offshore derivative deals on rupee which are settled in dollar) that the rupee was expected to stabilize Himanshu Tiwari astrologer Blog
"The rupee may have weakened to 2013 levels but the situation is completely different from back then and the economy is in much better shape. Unlike 2013 when rupee was overvalued on a trade-weighted basis, this time the rupee has actually gained against trading partners. So today there is actually a sense of disbelief on the rupee weakening," said Harihar Krishnamoorthy, treasurer of First Rand Bank. He added that the rupee fall has been steeper than the Chinese Yuan and at present level is competitive. "Unless China capitulates, I think the rupee should stabilize and 68-69 levels should be the worst case," he said.
Rating agency Care has said that the rupee's return to 66 levels is a possibility given that current account deficit and trade deficit are expected to be well within control unlike 2013 — the last time when rupee breached the 68 level Commodity Market Trading Tips
posted by Naresh Jain @ 22:48
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