Rupee at 2-months high a spill over effect from rest of the region: Nomura India
Rupee is seeing a sharp surge in trade, trading at 2-month high. In an interview with CNBC-TV18, Vivek Rajpal of Nomura India shared his views and readings on the same.
“Market has always been bullish on INR and if you also look from a top-down perspective, dollar-Asia is generally trading soft. So we are also getting some spill over effect from rest of the region,” he said.
From Reserve Bank of India’s (RBI) perspective, a hawkish RBI may not be that great for bond markets but it is something which is cheered by fx markets, he added.
The recent move is a combination of continued positive macro story that is going on in India combined with regional strength in currencies, said Rajpal.
Oil has been one of the weak links as far as India is concerned, if Organization of the Petroleum Exporting Countries (OPEC) meeting turns out to be a non-event and if oil moves lower along with risk sentiment doing well then there is no reason why one should be negative on INR, he further mentioned.
For full interview, watch accompanying video…