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
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