Why inr did not weaken post cad numbers
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The document discusses India's current account deficit and the strengthening of the Indian rupee (INR) despite high deficit numbers. It notes that the current account deficit peaked at 6.7% in the October-December quarter due to declines in gold and crude oil prices. This self-correcting situation reduced fears of INR devaluation. While the INR may remain stable, capital outflows could weaken it, with a breakdown below 55 triggering further decline. The outlook depends on factors like oil prices and foreign institutional investment.
Why inr did not weaken post cad numbers
- 1. Why INR did not collapse post Ugly Current Account deficit numbers? April 12 2013 Deepak Singh Stateofthemarket.net Twitter: smarket
- 2. Current Account Deficit Oct-Dec Quarter Current Account Deficit peaked at 6.7% There was fear of INR collapse post that number Reverse happened: INR strengthened
- 3. Current Account Deficit Problem Two Big Problem Items Gold Crude
- 4. Brent Crude: Dramatic Decline
- 6. Problem Self correcting Fact: Current Account Deficit situation may not worsen The way Crude and There is no trigger Gold has collapsed for INR to decline gives a lot more looking at future comfort to the Govt
- 7. What to watch out for What’s the outlook for INR But watch out Capital INR may remain flows…if FIIs start selling lackluster aggressively…it may derail INR Trade in 53-55 Band A breakdown below 55 may trigger decline
- 8. Thank You • Disclaimer - The state of the market presentation is Deepak's perspective on the market. The presentation is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this presentation you agree to make no trade relying in whole or in part on the comments of the writers • Chart Source: Chartalert.com • You can send me feedback at 2deepaksingh@gmail.com www.stateofthemarket.net