In the June quarter (Q1), India's current account surplus rsoe to $19.8 billion because of fall in imports. Even if, let's say subsequent quarters do not see that kind of performance, India will still have a current account surplus in FY21, said CEA Krishnamurthy Subramanian
Anant Narayan of Standard Chartered Bank, said that the current trend of risk-on play should continue. “We are seeing inflows coming through,†he said, adding that FCNR repayment ought to be contained. He believes the RBI will continue to mop up dollars.
India's Q2 CAD stood at 2.1 percent, a five-quarter high as exports growth slowed and imports increased because of a rise in demand for gold.
Everyone knows that CAD and FII exits are the starting points for triggers in the forex markets. This is also the time when importers start to panic.
China's current account surplus rose sharply to USD 69.6 billion in the second quarter of the year, the State Administration of Foreign Exchange (SAFE) said today.
The inflationary pressures that prompted China to raise interest rates for the third time in four months are evidence that the imbalances destabilising the global economy are slowly but surely being ironed out.