Rupee may see a sharp appreciation on the back of measures taken by RBI and government as the decline was largely driven by “fear trade”, analysts at Credit Suisse said. The bank says rupee can reach 57-58 levels though RBI may try to stem the volatility by starting to build reserves at 60.
FM to launch Irda’s insurance repository
Finance minister P Chidambaram is expected to inaugurate Irda’s insurance repositories on September 16. According to a note by Irda, the insurance repository system to be set up by the regulator will be the first of its kind in the world. Irda recently said five companies have been given the status of insurance repositories.
‘Inclusion in global bond indices key’
India may attract foreign inflows of $20-40 billion over a year if the country is included in leading government bond indices, says a report by Standard Chartered. FII investment cap excludes India from popular indices. Global asset managers, pension funds, mutual funds, and central banks use bond indices while making asset allocation.