Asian FX Update

FURTHER MEASURES FROM INDIA TO ATTEMPT TO BRIDGE THE CA GAP
• INR pressure leads to government current account pledge of 3.7%, with details on limits to imports to come.
• External financing via increased ECB’s for state owned companies and NRI restriction easing planned.
• Indian industrial production slumps while drop in imports on weak domestic dynamics helps the trade balance.
• We still see structural downside for INR, as the CA deficit remains well above the RBI’s estimated sustainable 2.5% level.

Read the full report: FX Daily

 

Scotiabank

Powered by WPeMatico

Share
This entry was posted in Forex. Bookmark the permalink.

Comments are closed.