The fall of rupee is not necessarily a bad thing as it will support exports, which will help bridge the gap in current account deficit, CEOof Nordea Asset Management Company Allan Polack said. “Weakening of currency is not necessarily a bad thing. It will make exports competitive from the country,” he said. He also said that economic recovery in US and European region is a positive development for the domestic economy.
DBS: Govt actions may only arrest fall
The recent policy actions might not help rupee regain lost ground but only arrest further depreciation, Singaporean bank DBS said. “The string of recent policy action might only help to manage the pace of depreciation and limit volatility rather than reverse the course of the currency," it said in a note.
“Persistent verbal and actual intervention is also being tapped, but only serves to buy time,” it said.