Indian rupee to slip further against dollar: CII survey - Financial Express

The rupee will continue to remain volatile and may weaken further against dollar if the government doesn't address issues like dwindling FDIs and infrastructural bottlenecks, a survey said today. "We need to move fast on the next round of reforms by addressing constraints such as land acquisition and environment which delay investments in industry and infrastructure. Also, We have to encourage FDI by easing of investment caps and continue rollback of fuel and fertiliser subsidies, the CII said in a statement. It also asked to take steps to improve investment environment and make India an attractive business destination for both domestic and foreign investors to prevent excessive volatility and downward pressure on the rupee. "The rupee would continue to remain volatile and might weaken further against the dollar during the next quarter if downside risks accruing from high CAD and dwindling of FDI flows remain unaddressed," it said. A majority of participants are expecting the rupee to trade above 59 against the dollar till September. However, some respondents expect it to remain in the vicinity of 58-59 to a dollar. "The large current account deficit (CAD) and our growing vulnerabilities on the external front have largely contributed towards the secular decline and the current volatility of the rupee," it added. The majority of the respondents have cited high CAD and burgeoning gold imports as the major reason for the recent downslide of the rupee. "Other reasons such as weak domestic sentiments and rising demand for dollars by importers also matter but their ... contd. via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNGNQGPtBa1jMNiYYe1ATC_CVkt-AA&url=http://www.financialexpress.com/news/indian-rupee-to-slip-further-against-dollar-cii-survey/1138696

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