According to Agam Gupta, the intention of the RBI is very clear. The central bank wants the call rate to be closer to the repo rate and not for it to jump up to 9 percent every now and then, he adds.
Imran Zaheer Ahmad, FX Strategy & Research Head, RBS Global Banking & Markets expects the rupee to strengthen against the dollar to around 44 levels in the coming weeks. “I think there will be further gains in the INR in the weeks ahead, at least, until the next LTRO at the end of February,” he said.