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Citi: 'no magic number' for RBI's FX reserves
  + stars: | 2024-10-11 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCiti: 'no magic number' for RBI's FX reservesCiti's chief India economist, Samiran Chakraborty clarifies how the Reserve Bank of India shores up its forex reserves, determined by India's balance of payments and capital inflows. He also discusses labor market data, noting that improving skills is a key focus for the Indian government's five-year term.
Persons: Samiran Chakraborty Organizations: Citi, RBI's FX, Reserve Bank of India Locations: India
BENGALURU, April 5 (Reuters) - The Indian rupee, one of the worst-performing Asian currencies last year, will fall further in the coming months and is expected to drift back to trade around where it is now in 12 months, according to a Reuters poll of FX strategists. Median forecasts from 40 respondents to a March 31-April 4 Reuters poll showed the rupee trading at 82.40/dollar by the end of the month and 82.55/dollar by the end of June. However, a fifth of respondents forecast the currency will change hands at 82.90/dollar or weaker as early as next month. A strong majority of poll respondents who answered an additional question, 13 of 16, said risks to their forecast were skewed towards the rupee being even weaker over the next month. "A key driver of the Indian rupee will continue to be the RBI's FX intervention strategy," noted Lin Li, head of global markets research Asia at MUFG.
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