FXstreet.com (Barcelona) - A few weeks back Reserve Bank of India announced an overhaul on measures to help ease the USD liquidity tightness onshore. However, in HSBC view, "these measures neither address the longer-term structural issues in India nor do they significantly improve USD liquidity in the FX market."
As HSBC explains at its weekend currency outlook: "We are not yet convinced that recent measures can turn the tide. In our view, the government needs to do more of the 'heavy lifting' such as introducing structural reforms to address the large twin deficits. In the absence of such reforms, we continue to expect INR weakness, particularly with European issues remaining a drag."
As HSBC explains at its weekend currency outlook: "We are not yet convinced that recent measures can turn the tide. In our view, the government needs to do more of the 'heavy lifting' such as introducing structural reforms to address the large twin deficits. In the absence of such reforms, we continue to expect INR weakness, particularly with European issues remaining a drag."
