FOREX – INR remain stable. Risk of depreciation prevail ( At three week closing high 62.14)

vINR remain stabilized below 63 level with moderate support from Indian Central Bank ( RBI )

 

v RBI received USD 25 Billion through NRI Deposit & Bank overseas Borrowing  under special swap arrangement  announced in Sept13 . It has been a great support  to INR since last two Month

 

v QE3 Tapering fear / rumor about its timing  will continue to influence the FX market till it actually happen

 

v Expected Improved Current Account Deficit  in  FY14 will continue to support INR ( FY 14  CAD likely to be below 3% )