Financial Daily from THE HINDU group of publications
Thursday, Dec 08, 2005


News
Features
Stocks
Shipping
Archives
Google

Group Sites

Money & Banking - Forex


JP Morgan bearish on rupee

Our Bureau

Mumbai , Dec. 7

THE rupee is expected to remain bearish and see 47.5 by December 2006, a senior official of JP Morgan Chase Bank, said.

"The rupee is seen bearish as the trade deficit continues to expand, leading to a worsening of the current account balance, while capital inflows are unlikely to make up the difference," Mr Rajeev Malik, Vice President and Senior Economist, JP Morgan Chase Bank said.

Current account deficit, which was at 0.9 per cent during 2004-2005, is expected to touch 2.2 per cent of the GDP in 2005-2006, 2.8 per cent in 2006-2007 and 3 per cent in 2007-2008, he said.

A further deterioration of the current account will put more pressure on the currency.

While the Indian economy is expected to end the current year at 8 per cent, fiscal side remains an issue. "We feel confident about medium-term growth at seven per cent," Mr Malik said. JP Morgan raised its growth estimate for India to 8 per cent from its earlier projection of 7.2 per cent. Its forecast for next year puts growth at 7 per cent.

JP Morgan has pegged fiscal deficit at 4.5 per cent while budget forecast put it at 4.3 per cent.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

More Stories on : Forex



Stories in this Section
SBI-TCS venture to offer tech platform to RRBs


Indian banks cannot outsource core functions: RBI
JP Morgan bearish on rupee
Rupee sheds 5 paise; securities decline
ICICI Bank prices issue at Rs 525
SBI upgrades plan to roll out ATMs — We expect explosive growth on this front: Purwar
IOB ties up with NCR to set up 150 ATMs
Exim Bank proposes 3 funds for food processing sector
T-bills auctions fully subscribed
TMB raises NRE, FCNR rates
Karnataka Bank raises FCNR, NRE deposit rates
BoI hikes term deposit rates
SBT employees on warpath


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line