In an interview to CNBC-TV18, Soumyo Dutta, managing director and head of trading at Citibank, A Prasanna, chief economist at ICICI Securities Primary Dealer and Jahangir Aziz, economist at JP Morgan, speak about their expectations from the central bank and give their outlook going forward.
In an interview to CNBC-TV18, Soumyo Dutta, managing director and head FXLM trading and risk treasury of Citibank says, the current move in rupee is little bit stretched.
Experts discuss the various options in front of the RBI and what impact these decisions will have on the economy.
Lot of factors are going to take the rupee to 52 like the risk rally losing momentum, China slowing down, a couple of Central Banks tapering their rate cuts and a disorderly default in Greece on the global level, and the election results, the Budget and monetary policy on the domestic level says Soumyo Dutta.
The rupee has rallied sharply in 2012. Soumyo Dutta of Citibank says, the rupee may consolidate around Rs 48.70-48.60 per dollar zone. “Rs 47.90 per dollar will be the next target for the rupee,” he adds.
Soumyo Dutta, managing director and head FXLM trading and risk treasury at Citibank believes that the quick retracement from 48 levels that was seen on Wednesday was due to RBI intervention.
In the past month the RBI has moved a bit more to breathe life into India's comatose bond market. It has allowed 91-day T-bill based interest rate futures. It has also announced draft rules for credit default swaps, which allows bond investors to buy protection.