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Rupee depreciates 27 paise to 78.80 against US dollar in early trade
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Trading desks should prepare for much lower liquidity surpluses: B Prasanna

Expects rupee to trade in the range of 78-80 per US dollar in the near term because of still relatively weak BoP fundamentals

Liquidity | Indian rupee | Rupee vs dollar

Bhaskar Dutta  |  Mumbai 

B Prasanna, ICICI Bank’s head of global markets
B Prasanna, ICICI Bank’s head of global markets

The recent sharp decline in surplus in the banking system could have been by Reserve Bank of India’s (RBI’s) design as it seeks to push up short-term money market rates and ward off speculation against the rupee, says B Prasanna, Bank’s head of global . As the three-day (MPC) meeting kicks off, in an interview to Bhaskar Dutta, Prasanna says with the central bank moving towards the removal of accommodation, trading desks should prepare for more frequent episodes of tightness. Edited excerpts:



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First Published: Wed, August 03 2022. 10:56 IST