Markets were surprised with the 25 basis points repo rate hike and now there is a fear that rates may be hiked further. But even with the repo rate hike, the yields range for the 10-year bonds could be 8.50-9 percent for the next 2-3 months, says Manish Wadhawan of HSBC.
Today morning some foreign institutional investors (FIIs) bought orders and the rupee quite gently moved on to 64.11/USD, which was the costliest that the dollar traded
Agam Gupta of Standard Chartered Bank, says that he thinks that an extra demand for dollar due to trade deficit will continue to drive the rupee market. He also expects the euro-rupee can move higher and in a new range.
Ashish Parthasarthy, head Treasurer, HDFC Bank, says that The flow which impacts the trade deficit and current account deficit will continue to put pressure on the rupee and it will depreciate.
Neither the currency nor equity markets cheered the new RBI policy measures announced on Monday, but only hoped for more. To arrest the falling rupee, the central bank hiked the limit of ECB to USD 10 billion. Moreover, the regulator also increased the limit of overseas investment in government bonds by USD 5 billion to USD 20 billion
Partho Mukherjee of Axis Bank tells CNBC-TV18 that the Reserve Bank has very few or limited options at its disposal to defend the rupee.
Latha Venkatesh of CNBC-TV18 does a news wrap of the currency market, explaining the effect the Greece payback had on global money, especially the euro and rupee.
CNBC TV18's Menaka explores the burning issue of currency war as central banks start to directly intervene in money markets to stabilise their respective currency. Joining her is Andrew Busch, Global Currency and Public Policy Strategist at BMO Capital Market.