It is high time to manoeuvre the rupee more effectively and predictably, even as it has to be recognised that such tweaking of the rupee needs to be accompanied by reforms to the real sector and factor markets.
Brent crude prices fell to $57 a barrel on Monday from $62 a barrel.
The rupee had lost 21 paise on Tuesday's trade.
India's foreign exchange reserves declined by a whopping $4.343 billion to $367.646 billion.
Investors sought to book profits at attractive valuations after recent run up in last few trading sessions.
Weakness of dollar in the global markets and foreign capital outflows also affected the rupee sentiment.
US brokerage Bank of America-Merrill Lynch on Tuesday said its sees the first rate cut this fiscal only in March next as inflation is expected to fall only by December end on a decline in commodity prices driven by the US Fed tapering.
RBI might not cut rate on June 2 but will surely cut soon.
Finance Minister Arun Jaitley on Friday tabled the pre-Budget Economic Survey in the Lok Sabha.
The rupee recovered by 15 paise at 65.49 against the US dollar.
'You can put 25 per cent right now; put another 25 per cent when Nifty corrects another 500 points.' 'At 13,500 put another 25 per cent and at 13,000 one can get fully deployed.'
Heavy unwinding by foreign portfolio investors and lacklustre equities dampened the sentiment
The EU is likely to intensify sanctions if the situation remains tense.
Rajan's first few measures include swap window facility for banks to lure in NRI funds.
Last November, a lawyer for Future Retail Limited (FRL) told Delhi high court that Amazon is interfering with its lawful business and thousands may lose their jobs and FRL may go bankrupt. Senior advocate Harish Salve, who appeared for FRL, likened Amazon to East India Company. Senior advocate Gopal Subramanium, who represented Amazon, told the Future counsel to keep the "East India Company" rhetoric aside, as Amazon has invested $6.5 billion all over India and created 900,000 jobs. This drama played out in the case in which Amazon has challenged Future's $3.4-billion deal with Reliance, alleging the retailer's deal breached an agreement with the American e-commerce firm.
The year 2015 is likely to see lower rates to support growth and the Reserve Bank is expected to cut key policy rates by 0.25 per cent in February's monetary policy review meet, says a Bank of America Merrill Lynch report.
Forex dealers said rebound in domestic stock markets also helped the rupee strengthen against the dollar.
A weak dollar overseas also aided the rupee rise while fresh sell-off by foreign funds in domestic stocks capped the currency's gains, forex dealers said.
Sentiment remains broadly supported on strong foreign buying in Indian markets, especially in debt.
A fall in the rupee could boost exports. But the flip side of the equation is that a weaker rupee could stoke some inflation
Currently, non-residents visiting India are not allowed to take out any Indian currency while leaving the country.
Fresh foreign capital outflows also affected the rupee sentiment, a forex dealer said.
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Some analysts believe that markets are expected to remain unclear and would have to wait until tomorrow's US non-farm payrolls data.
India's current account deficit narrowed sharply to just $300 million
The year 2015 may well turn out to be a watershed in global macroeconomic adjustment.
FPIs, which are holding large exposures in Indian debt, could also be expected to book some capital gains as yields slide down
The rupee had gained 6 paise to close at 60.07 against the dollar in Thursday's trade on fresh selling of the American currency by banks and exporters in view of strong capital inflows.
A rate cut will bring positive sentiment around the Budget.
Risk sentiment is likely to be favourable if oil prices stay benign, global growth sentiment remains robust and the dollar index does not break out, says B Prasanna.
RBI would get the comfort of meeting its 8 per cent January Consumer Price Index-based inflation target, BofA-ML said, adding that 'we expect the RBI to cut 75 bp in 2015 from February with inflation on course to 6 per cent in January 2016'.
Since mid-July, the RBI has taken steps to tighten cash conditions, which have failed to support the rupee but sent bond yields surging, posing a fresh threat to the already cooling economy.
It makes sense to wait for govt schemes such as gold bonds.
This is the BJP's first full-year Budget.
Markets ended at record closing highs for the second day in a row on institutional buying.
The big test will come at the end of March when the fiscal year ends and banks tend to hold on to cash.
Across the board, demand would appear to be slacker than it should be if we are headed for a healthy recovery.
Given their growth prospects and reasonable valuations, Mindtree, Hexaware and NIIT remain top picks of most analysts.
The derivatives expiry on Thursday is also expected to add to the volatility.
The new series claims GDP grew at seven per cent between April and June 2015, while gross value added (GVA) grew at 7.1 per cent.
The finance ministry and RBI must get less conservative and improve co-ordination.
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