RBI Measures May Slow Rupee’s Fall, But Won’t Reverse Trend: Nomura
The Reserve Bank of India’s latest measures may stabilise the rupee in the near term, but a sustained recovery will depend on an improvement in India’s balance of payments, according to Nomura’s Sonal Varma. Speaking to NDTV Profit, Varma said the measures signal the central bank’s discomfort with further depreciation and could slow the currency’s decline. The rupee has lost more than 7% against the US dollar this year amid rising oil prices and global bond yields. Varma said persistently high crude prices could add to external pressures, while stronger exports, foreign direct investment and capital inflows would support a lasting recovery.
