Rupee could lose 2-3 pct, says StanChart

Tuesday, 15 May 2012 00:00 - - {{hitsCtrl.values.hits}}

Reuters Market Eye: The USD/INR is facing choppy trading in the near-term, with another 2-3 per cent upside from current levels amid global uncertainty.

The bank lowers its medium-term rating on the rupee to ‘neutral’ from ‘overweight’ as continued policy inertia lowers the possibility of sustained inflows.

The bank recommends USD-based investors in Indian assets maintain high short-term FX hedge ratios.

The bank also says importers should keep high FX hedge ratios in USD/INR in the short-term, expects exporters to remain sidelined until a record high of around 54.30 is tested.