Expect rupee to peak at 64/$; see more gains in G-sec upto 6.60%: Federal Bank

After a long time bond markets saw gains and the rupee as well is strengthening every day.

Discussing the trajectory of these asset classes, Ashutosh Khajuria, ED, Federal Bank in an interview to CNBC-TV18 said the inflation number ticking below 3 percent brought about a rally in bond markets and now people are expecting the Reserve Bank of India (RBI) to change their stance a bit as well.

So, more gains in the bonds upto 6.60 percent are possible, said Khajuria.

The rupee is currently trading at 21-month high around 64 to the dollar.

According to Khajuria, the trade account deficit number was a bit alarming at USD 13 billion and now with new segments like electronic goods, which is the thirds largest group after oil and precious metals is a cause of concern. So, it is likely that rupee may peak off at 64/USD levels.

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