Trump’s tariffs and global trade war to keep pressure on rupee: Anindya Banerjee
«So, we will keep on seeing such liquidity measures continue because in our opinion the tariff war is not temporary, that is the reason why I said Trump one and Trump two are very different,» says Anindya Banerjee, Kotak Securities.
This further weakness in the rupee and touching its all-time low levels for today, how do you see this and what is next for rupee actually? Help us understand your analysis because in the last few quarters we are seeing a lot of intervention from the RBI as well. So, where do you see rupee headed and stabilising as well?
Anindya Banerjee: See, the Indian rupee is now subjected to what is happening to almost all Asian currencies, almost all currencies against the US dollar. Because after Trump announced the high tariffs on Canada and Mexico also, he slapped fresh tariffs on China.
The trade war is on and we have been expecting this since the end of last year that we have been arguing that Trump too is going to be very different from Trump one and his America first policy can actually lead to some very decisive actions on the trade war front because he has been very categorical about bringing manufacturing back into us and that can lead to some unpleasant consequences on global trade, so that is the reason why dollar index is almost at 110 and we are seeing the impact on the Indian rupee and we could see some more deposition on the rupee, but RBI is going to be there curbing the volatility.
But from what we understand, RBI has done a 5 billion dollar rupee-dollar swap just a few days
