Forex Flash: Stronger Indian Rupee in 2013 towards 53.2 – TDS

According to TD Securities analysts: “Worries of a difficult debate over the new budget may continue to weigh on INR performance. However, we continue to see stronger rupee in 2013 towards 53.2 in
Q1 on reforms, slower inflation, and the RBI assisting growth,” they explain.

The analysts add: “It w as reported on Friday that FinMin Chidambaram plans to cut public spending by further 10% from its original target in the FY 2013/14 budget, in a bid to avoid rating downgrades to junk status. However, the budget is subject to Parliamentary debate, directing the market focus back onto India's politics this week.”