Stability of rupee @ 61-62 is a myth...... For sometime the demand has been artificially suppressed because the RBI is fulfilling requirements of the oil marketing companies outside the market, which is estimated at $400 million/day. But these swaps cannot continue forever, else reserves will deplete rapidly. RBI has sold spot dollar, but bought them in the forward market. When that leg matures, demand will come back into the market. So, let’s be prepared to welcome back the volatility in Indian rupee very soon.
Posted on: Wed, 23 Oct 2013 09:17:05 +0000
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