NRI bonds more effective than rate hike in stabilising rupee: Report
As per the brokerage, there is a rising case for issuing NRI bonds, "with our oil analysts now seeing USD 72/bbl in 2018 and USD 75/bbl in 2019". The brokerage is of the opinion that a rate hike by RBI to support depreciating rupee is not likely.
The depreciation in rupee is unlikely to trigger a rate hike by RBI and instead the central bank may raise USD 30-35 billion by way of NRI bonds to shore up forex reserves.Image source: Reuters