People don’t look at high forex reserves, but look at burn rates: Pranjul Bhandari

Mumbai, Sep 20 (IANS) Pranjul Bhandari, Chief India Economist at HSBC Securities & Capital Markets (India), has said that most people don’t look at the high forex reserves the India have, but look at how it has spent in last few month to stabilise rupee.

She was speaking at an event organised by the Morningstar during an interaction round on ‘Indian Economy: Potential and Vulnerabilities’.

The rupee has been under pressure in last few months and the Reserve Bank of India (RBI) has been actively using forex reserves to keep levels under control.

Recently, the rupee has tested the lifetime low levels more than once and the central bank has defended the levels in a prudent manner.

Today, during the early trade the rupee has appreciated 10 paise at 79.67 against the US dollar due to positive trends in the equity market.

Sensex was trading 937.41 points or 1.59 per cent up at 60,078.64, Nifty was up 291.05 points or 0.15 per cent at 17,913.30 during the afternoon trade.

Meanwhile, talking on the rate hike she said that the she is expecting 35-50 basis points rate hike in the upcoming monetary policy.

The next three-day monetary policy meeting will be held during September 28-30.

–IANS

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