Domestic politics to drive rupee: HSBC

Tags: HSBC, Rupee, News
Domestic politics will increasingly drive the fate of the rupee, much like the Japanese

RELATED ARTICLES

yen or the euro, HSBC says in a note on Friday.

HSBC says its base case scenario is for the government to maintain its reform agenda, but warns the parliamentary process is "fraught with downside risks."

"This debate will be a litmus test for the INR and the reform process," HSBC writes. "If we were to a see a reversal of some of these recent reforms, it would undoubtedly put increasing weakening pressure on the INR."

HSBC expects "strong upward pressure" on the USD/INR should the reform process falter, but for the pair to retrace its recent gains should the government gain traction with its policies.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Sebi’s proposal to bring clarity to merger moves is a welcome step

    Market regulator Sebi is reportedly planning changes in rules governing merger and acquisition of companies in India.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Arun Kumar Jain

Prosperity mantra across the ages

The economic prosperity of a nation rests upon its ability ...

Kuruvilla Pandikattu SJ

Can we pop a pill for compassion?

Can altering brain chemistry make us more sensitive to inequality? ...

Gautam Gupta

Fashion forward for e-commerce industry?

Looks like the e-commerce industry is taking a leaf out ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture