Reserve Bank Of India Will Defend Rs65/USD: BofAML

Although Reserve Bank of India will extend only a token resistance at Rs 64/USD, the central bank is expected to sell $15 billion to defend Rs65/USD levels, notes BofAML. In their “India Economic Watch” research report published on July 31, 2015, analyst Indranil Sen Gupta and colleagues at BofAML anticipate the RBI to raise the FPI G-sec limit by about $5-6 billion on September 29 if the September Fed hike is priced in by then. BofAML reiterates its three-step Reserve Bank of India call on rupee Gupta and team argue that considering that the INR is seasonally weak in August,…