USDINR may rise post ECB chief Mario Draghi`s comments

Nirmal Bang has come out with its report on currency. According to the research firm, USDINR is likely to rise in tandem with drop in Asian currencies as European Central Bank chief Mario Draghi's comments drag the euro lower.

Rupee weakened on Thursday after a government projection estimated economic growth in the fiscal year will be worse than expected, raising concerns about how it would fund its fiscal and current account deficits. The partially convertible rupee closed at 53.22/23 per dollar, versus its previous close of 53.15/16, a second session of falls.  Preliminary data released on Thursday showed the economy set to have grown 5.0 percent in the fiscal year ending next month, underscoring the urgent need for reforms to boost growth. The $2.1 billion share auction in state-run power utility NTPC Ltd was fully covered on Thursday. 

The disinvestment process, deregulation of diesel prices and also some budgetary stance may help lower CAD (current account deficit) as well as fiscal deficit.  USDINR is likely to rise in tandem with drop in Asian currencies as European Central Bank chief Mario Draghi's comments drag the euro lower. The euro hovers near a two-week low on Friday after the ECB chief said on Thursday he would monitor the impact of the currency's strength, making more straightforward remarks on the exchange rate than many had expected. 

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