Lowering govt stake in PSU banks is a good step but autonomy to banks will be more prudent
The RBI policy guidance suggests growing comfort to tackle inflation pressures with support from new government's structural reforms
The yield on the 10-year bond might near 8.40 per cent this week
Meanwhile the rupee rose the most in two week as European Central Bank cut its benchmark interest rates to unprecedented lows
The pair is seen in a 59.18 to 59.30 range until close
The rupee is among the best-performing emerging currencies this year
The euphoria after the NDA victory in the general elections is dying down
Uneven demand and supply transactions of dollars supported the rupee
Traders are now expecting a rate cut later in the fiscal year
The pair is expected to hold in a broad 59.20 to 59.60 range this week
Cut in export credit refinance aimed at moving away from sector-specific windows
The rupee ended at 59.39 to the dollar on Tuesday, compared with its previous close of 59.17
RBI, however, clarified no such leeway would be available for capital requirements related to unhedged foreign currency exposures
Say RBI cut the SLR cut keeping economic growth in mind
They can hedge up to $10 mn over and above their exposure; trading volumes set to rise further
RBI signals it will not back down from inflation-fighting
The move aims to improve liquidity in the forex market