Below are Views On The volatility in FX will increase as there is an event risk ahead of budget and RBI policy By Mr. Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services
"The volatility in FX will increase as there is an event risk ahead of budget and RBI policy. As long coronavirus risk prevails, it is obvious that fiscal deficit for the current year will widen, and overall the budget has to be expansionary. In absence of additional growth measure, a knee jerk reaction can be negative on rupee. But there are IPOs lined up for subscriptions which can attract FII participation so until the USDINR spot remains below 73.50, it will continue to be bearish. The local factors along with US fiscal stimulus uncertainty will continue to keep USDINR broadly in between 72.50-73.50."
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