INSUBCONTINENT EXCLUSIVE:
Nomura expects the rupee to bounce back to 72 per dollar by end-MarchThe rupee is set to recover by March to levels seen before the
coronavirus pandemic, thanks to a rare current account surplus and expectations that the central bank may be more tolerant of a stronger
currency, according to Nomura Holdings Inc.Nomura expects the rupee to bounce back to 72 per dollar by end-March, a level last seen in
It sees sluggish oil prices to act as a tailwind for the net oil-importing nation, setting it on course to record its first current-account
The rupee is Asia's worst performer with a year-to-date loss of 4 per cent
Traders have blamed heavy currency intervention by the Reserve Bank of India, though the nation's economic outlook has also been blighted by
the region's biggest virus outbreak.Padmanabhan sees the central bank changing its approach, especially as the broader risk-on sentiment
said.Signs of an economic recovery are also supporting the case for the rupee's appreciation
The manufacturing purchasing managers index rose to its highest in about a decade last month, while foreign-direct investments surged 13 per
cent in the April-August period from a year ago.Not everybody shares Nomura's optimism
ICICI Bank Ltd.'s sees the rupee closer to 74 per dollar by fiscal year end
markets, sales, trading and research said
That's partly due to higher domestic inflation, and the RBI intervention is to manage this overvaluation, he added.
