Speculations may have triggered rupee fall: SBI report
Updated : November 29, 2018 07:17 AM IST
SBI's 'Ecowrap' noted that even as there has been policy changes to liberalise capital inflows, merchant and interbank market foreign exchange turnover give interesting insights regarding demand-supply matrix of foreign exchange.
In the merchant market (in both spot and forward segment), there was an excess demand in the range of $9-14 billion since February 2018. However in the interbank market, the trend is quite opposite and there has been excess supply.
Relentless increase in crude prices since July did increase speculative activities in foreign exchange market that may have been avoided through vaguely right/ proactive measures.