Taimur Baig, MD & chief economist at DBS Group Research, spoke to CNBC-TV18 about the current trends in forex markets and his policy expectations.
"The government should signal that they are pursuing reasonable fiscal responsibility," said Baig.
When asked about the forex market, Baig said, “Large part of forex development are from global cues. They are not reflecting any major developments in India and we also agree that most of the major developments in India are fairly positive.”
“The current account has widen but that is because oil prices are up and fiscal hasn’t improved that much but it’s because several revenue structural measures that are going on are not fully bearing fruit yet,” he added.
According to him, "Oil will remain on an uptrend given impending Iran sanctions."
Talking about the rate hike, Baig said, "We expect Reserve Bank of India (RBI) to hike rates in October and December. We also expect US Fed to raise rates for two more time this year."
Have you signed up for Primo, our daily newsletter? It has all the stories and data on the market, business, economy and tech that you need to know.