If the Lok Sabha election results is in accordance with the market then the rupee can go upto the level of 57 as against the dollar.This has been spoken by Bank of America - Merrill Lynch in its latest report .On Monday,rupee closed at 60.11 by 3 cents weaker against dollar , in the currency market. In the currency market on Monday, 3 cents weaker rupee against the dollar and closed at 60.11. However,once it was reached up to the level of 59.78 during the trading session.
Bank of America - Merrill lynch has told that if on 16 May, there will be some stable government in accordance with the market,then it can not be refused that rupee will reach up to the level 57-58.If the stable government has managed to increase the flow of capital from foreign, then RBI will start buying dollars.
However ,due to the cut policy of Federal Reserve, it is very difficult to take large amount foreign capital into the country.For rupee stability there should be cover 10 months of imports bucks while the current level is 7.5-8 months. Additionally , the report also expressed the hope that the new government sooner or later will also remove restrictions on the import of gold .
Well , if rupee grows at 57-58 rupee level,then the import based industry will benefit. But export oriented industries like IT software and pharma etc, may increase their difficulties.Because these sectors have their revenues comes in the form of dollars.
Bank of America - Merrill lynch has told that if on 16 May, there will be some stable government in accordance with the market,then it can not be refused that rupee will reach up to the level 57-58.If the stable government has managed to increase the flow of capital from foreign, then RBI will start buying dollars.
However ,due to the cut policy of Federal Reserve, it is very difficult to take large amount foreign capital into the country.For rupee stability there should be cover 10 months of imports bucks while the current level is 7.5-8 months. Additionally , the report also expressed the hope that the new government sooner or later will also remove restrictions on the import of gold .
Well , if rupee grows at 57-58 rupee level,then the import based industry will benefit. But export oriented industries like IT software and pharma etc, may increase their difficulties.Because these sectors have their revenues comes in the form of dollars.
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