4 Sep 2013
RBI has to intervene again, USD/INR flirts with all-time high
FXstreet.com (Barcelona) - Following a catastrohic few weeks, in which the India Rupee hit one record low after another indiscriminately, only the Reserve Bank of India intervention has been able to ease the Rupee's pain, despite consensus has been that no quick fixes are thought to stabilize the currency unless more structural policy changes occur.
USD/INR remains disruptively bullish
Today, after taking a short-lived respite last week, the USD/INR has been approaching record highs again, which has seen the RBI reportedly intervening again in the market.
As Mike Paterson from Forexlive notes: "Not a good day to start your new job as former IMF chief economist Raghuram Rajan becomes the latest RBI governor today. Quite how he intends to stop the rot remains to be seen but we can be certain that the plight of emerging market economies will feature heavily at this week’s G20 summit in St Petersburg."
RBI looking at different options
The latest chatter in the market has it that the RBI is set to meet with foreign banks for committing NRI deposits, which implies the repatriation of USD back, for a total speculated sum of some US$10bn. The announcement is due tomorrow.
USD/INR remains disruptively bullish
Today, after taking a short-lived respite last week, the USD/INR has been approaching record highs again, which has seen the RBI reportedly intervening again in the market.
As Mike Paterson from Forexlive notes: "Not a good day to start your new job as former IMF chief economist Raghuram Rajan becomes the latest RBI governor today. Quite how he intends to stop the rot remains to be seen but we can be certain that the plight of emerging market economies will feature heavily at this week’s G20 summit in St Petersburg."
RBI looking at different options
The latest chatter in the market has it that the RBI is set to meet with foreign banks for committing NRI deposits, which implies the repatriation of USD back, for a total speculated sum of some US$10bn. The announcement is due tomorrow.