Mumbai, July 31, 2012: Abhishek Goenka, Founder and CEO, India Forex Advisors Pvt. Ltd, today remarked on RBI Monetary Policy and its Impact on Rupee.
He said," As per our expectation RBI has kept the rate unchanged”, adding reducing SLR from 24% to 23% would help the central bank efforts to ease the liquidity in the market.
Further, he said the bond yielded spiked up to 8.22% after the policy announcement and the rupee was also seen weakening above 55.65 plus levels. “The central bank has again disappointed the market with no action on the table”, he said.
Adding, he said deficiency in monsoon had increased the chances of inflation remaining above comfort levels had also acted as a major hurdle in the path of the RBI.
“We expect the rupee to depreciate further and target it to 56 plus levels in the days to come as India's annual revised GDP growth estimated for FY13 has come down to 6.5% from 7.2% earlier”, he said, adding moreover, the average inflation outlook also had been revised upward to 7.3% for 2012-13.
The new RBI guidelines on EEFC and forward rebooking and cancellation would allow the long position to be built up in the market which would further add to the weakness to the rupee, he said.
(Source: Corporate Communications Team, India Forex Advisors Pvt. Ltd.)