Reuters Market Eye - HSBC estimates Reserve Bank of India's action to raise short-term interest rates and conduct a bond sale on Thursday will squeeze out 300 billion rupees in liquidity, and says it is "not an insignificant amount."
USD/INR could stabilise or could even gain in the near-term to below the 59 level.
However, these measures do little to address the structural issues which have caused the rupee to underperform versus the rest of the region in 2013, HSBC adds.
HSBC holds a forecast of USD/INR at 59 by the end of the year.
(Reporting by Subhadip Sircar)
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