RBI May Let Rupee Weaken In The Next 2 Quarters: Kotak Bank
NDTV
For several months, the RBI has frequently stepped in to aid the rupee, as the USFederal Reserve's aggressive rate hikes dampen demand for non-dollar currencies.
The RBI may slow its intervention to protect the rupee during October-March, and allow the currency to move in alignment with global trends, Kotak Mahindra Bank said on Friday.
The rupee dropped to a record low of 81.2250 to the dollar on Friday, prompting the RBI to sell dollars to prop up the currency, traders said.
"We expect the INR to remain under pressure as markets continue to assess the extent of spill-overs from the (U.S.) Fed's hardening policy stance," Upasna Bhardwaj, senior economist at Kotak, said in a note.
For several months, the RBI has frequently stepped in to aid the rupee, as the US Federal Reserve's aggressive rate hikes dampen demand for non-dollar currencies.
