HindustanTimes Tue,02 Sep 2014

Goldman cuts rupee 3-month target to 58/dollar

Reuters  Mumbai, June 14, 2013
First Published: 12:30 IST(14/6/2013) | Last Updated: 12:33 IST(14/6/2013)

Goldman Sachs cut its three and six month forecasts for the Indian rupee to 58 per dollar, citing the sell-off in emerging market currencies and the country's relatively high current account deficit levels.


Goldman had previously forecast the rupee would hit 55 in three months and 53 in six months against the dollar. The investment bank has also revised its 12-month forecast to 56 per dollar from 52 earlier.

The rupee has declined sharply since the start of May, hitting a record low of 58.98 on Tuesday.

"In the near term, risks to the INR remain elevated due to market concerns about rising US bond yields and their potential negative impact on capital flows to current account deficit EMs (emerging markets)," the note said.

At 9:45am, the partially convertible rupee was trading at 57.73/74 per dollar versus Thursday's close of 57.98/99.

more from Business

RBI asks banks to set timeline to process loans

To expedite credit decisions, the Reserve Bank of India on Monday asked banks to set a timeline for disposal of loan proposals but did not ascribe a particular timeframe for the same.
Most Popular
Copyright © 2014 HT Media Limited. All Rights Reserved