Gold Silver Reports (GSR) – India rupee is likely to open weak as the country’s current account deficit widened last quarter. The current account gap was $13 billion in October-December quarter or 2 percent of GDP.
That’s wider than the previous quarter’s $7.21 billion deficit. Implied opening from forwards suggest spot may start trading around 65.12.
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Goldman sees the rising trade deficit more as a risk than an immediate concern to India’s external account. It has raised its FY18 current account deficit forecast to 1.9 percent of GDP from 1.8 percent earlier.
