Markets give thumb’s up to Raghuram successor Urijit Patel

Priyanka menta Compass

Raghuram Rajan RBI governor in India is now to be succeeded by Urjit Patel from September 2016. We have had tamed inflation and a slowdown in rupee decline while Raghuram Rajan was in tenure. We would expect a similar kind of pressure and expectations from Urjit Patel as well.

Urjit have some very strong credentials and experience behind him and although the markets seems to be giving a thumbs up to his appointment at present we would still see some uncertainty for a few months.

Looking at the Australian markets now we have the Australian dollar trading well over .7600 against the USD. With chances of a feds rate hike off the table for few months and RBA not indicating a further rate cut soon I think that the Australian dollar is sitting strong against the greenback.

This might be a good level for importers to look at some hedging options and exporters to take some cover.

On 23 August at 11.13 pm AUD/USD is sitting around .7644 and AUD/INR is trading around 51.28.

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