vAfter staying range bound for almost two Month INR started depreciating suddenly in last 7 Days
àKEY REASON
v Fear of of early QE3 tapering, as positive Economic data started coming from USA ( higher Sept Quarter GDP , Improved employment & improved industrial activity )
v Indian Oil Marketing Companies returned back to FX market steadily .( Since last two Months they were taking USD directly from RBI as per some special swap arrangement )
v FII,s selling from Indian Equity for profit taking ( Equity Market dropped1100 points in last 7 days )
à POSITIVE FACTORS
v unlike the situation in August 13 when INR touched 68.80 , India seems to be better prepared now to face QE3 impact
v In last two Months USD 18 Billion FX inward has come from NRI deposits & Bank borrowing ( as per Special RBI support )
vImproved CAD will be a big support to INR in next few Months, if the trend is maintained
vProactive approach & assurance by RBI Governor to the Market will be a big positive to the Market
vNew Governor of Federal reserve Ms Janet Yellen ( to take charge in Jan 14 ) considered to be pro stimulus ( may delay QE3 tapering)
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