Credit Agricole said it does not see value in the rupee below 70 to a dollar unless foreign capital returns and that it would not recommend buying the currency for fundamental reasons below 75 to the dollar. Long-term solution deep economic, political and social reforms is unlikely ahead of the election and possibly for years to come, Credit Agricole said in a note dated August 21, adding to the chorus of bearish bets on the rupee. India is due to hold national elections by May.
Forex inflows key for R: Barclays
Rupee is unlikely to get any meaningful benefit from RBIs measures as the key to support the currency is boosting forex inflows, Barclays said in a research note. According to the global financial services major, two main concerns that have driven rupees weakness expectations of Fed tapering and Indias ability to fund its current account and fiscal deficits will continue to hit sentiment.