Ru­pee Could Hit 62.50-62 by March

The Economic Times - - Smart -

Amer­ica Mer­rill Lynch. “The cen­tral bank will con­tinue to build re­serves amid uni­di­rec­tional flows. There is noth­ing wrong in it as it al­ways aims to en­sure a sta­ble ex­change rate.”

The ru­pee’s value in­crease is an op­por­tu­nity for the Re­serve Bank of In­dia (RBI) to cre­ate suf­fi­cient forex re­serves. The cen­tral bank in­ter­venes in the mar­ket buy­ing dol­lars to curb volatil­ity.

Deutsche Bank, for its part, cut its fore­cast on the ru­pee from 72.50 pre­dicted ear­lier to 66 a dol­lar by March-end.

With the strong Dol­lar cy­cle likely to have peaked, the ru­pee has ap­pre­ci­ated based on In­dia’s strong Bal­ance of Pay­ments po­si­tion, said Kaushik Das, the Mum­bai-based econ­o­mist at Deutsche Bank.

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