BofA-ML: RBI likely to hold Rs 58-62/USD for now
According to a report released recently by Bank of America Merrill Lynch (BofA-ML), despite the appreciation in the US dollar (USD), the Indian rupee will likely trade in the range of between Rs 58 and Rs 62 per dollar; thanks largely to the fact that global oil prices have softened and curbs have been imposed on gold imports.
The report by BofA-ML, which is a global brokerage firm, has also asserted that, along with softening oil prices and continued curbs on gold imports, another factor supporting the Indian rupee is the rising FII equity inflows at $9.6 billion thus far.
BofA-ML asserted in its report: “We expect the RBI to hold Rs 58-62/USD for now even though the US Dollar has strengthened below 1.30/Euro.”
The BofA-ML report coincides with the recovery of the Indian rupee by 15 paise to 60.24 against the dollar in early trade, chiefly on account of increased foreign funds inflows sustained by exporters and banks because of increased selling of the US dollar.
Meanwhile, in its latest report, BofA-ML has also projected that an amount of $40 billion will have to be raised by the Reserve Bank of India (RBI) by March 2016, so as to ensure that import cover can be maintained at the current eight months.
Source – The Economic Times
Bank of America Merrill Lynch, BofA-ML, FII equity inflows, increased foreign funds, oil prices, RBI, Reserve Bank of India
