Free Press Journal

Rupee likely to be around Rs 66/USD


New Delhi : The rupee is expected to be around 66 per US dollar by the year end because of rising current account deficit and muted FPI equity inflows amid rich valuations in domestic stock markets, says a report.

According to Bank of America Merrill Lynch (BofAML), the Reserve Bank is expected to follow an “asymmetrical” policy response to the US dollar, wherein it will allow some depreciation in the rupee and will recoup forex reserves at every opportunity that the greenback depreciates.

  “The RBI will likely continue to follow an asymmetrical forex policy of recouping forex reserves when the US dollar is depreciating and allowing Rs 65-66/USD when it appreciates,” BofAML said in a research note. It further said that “we see a tug of war between the USD and the RBI’s compulsion to recoup forex reserves.”