Articles by Arjun Parthasarathy
Oct 01, 2013
CAD worries wane: Why rupee will appreciate nowThe blame for the rupee's freefall was largely attributed to concerns over India's wide current account deficit (CAD). India's CAD for 2012- 13 was 4.8 percent of GDP, the highest on record for a full fiscal year.<br /><br />
Sep 26, 2013
Dear FM, Seventh Pay Commission will only help you lose votesA sudden shock in the global markets can easily take rupee can easily go back to its lows. This could be either the Fed cutting its asset purchase programme faster than expected or geopolitical tensions in the Middle East spiking oil prices globally.
Sep 24, 2013
Raghuram Rajan's real tightrope walk is in bond marketThe market is struggling with the restriction on banks' access to the LAF window for funds, which the RBI has, as part of its efforts to tighten liquidity and defend the rupee, capped at 0.5 percent of individual bank's deposit.
Sep 20, 2013
Decoding RBI policy: Economy can't handle such low ratesDr Raghuram Rajan in his first policy statement has made clear his views on interest rates, inflation and the Indian rupee.
Sep 20, 2013
Rajan relieved as Fed paves way for RBI to roll back liquidity measuresthe reason for rallies in domestic equities, currency and bonds are that FII's will pump in money into the market and that the RBI will roll back liquidity measures.
Sep 19, 2013
Fed stimulus: India needs US crutch to stay standingThe Fed's primary aim is to address inflation and unemployment in the US and its policies are geared to that end. Unfortunately for the rest of the world, the Fed's actions have a knock on effect globally as the USD is the reserve currency of the world.
Sep 17, 2013
Rajan's biggest headache: Govts are driving up food pricesThe central and state governments have made sure that there is absolutely no incentive for anyone to work the fields. The most common complaint amongst farmers in India is the lack of labour and the cost of labour. Why should anyone work hard in the fields when the government is providing everything free?<br /><br />
Sep 10, 2013
Rupee at 63.8: 5 reasons why the worst is over for rupeeThe INR will not strengthen because India has a new RBI governor. Rajan can only take decisions that will be USD inflow positive such as opening a swap window for FCNR (B) deposits for banks or allowing easier access to USD funds for domestic borrowers
Sep 05, 2013
Markets welcome Raghuram Rajan with open armsIt is not a pleasant time to take over the reigns of the RBI, but it definitely is a great time to help steer the country out of the woods.
Aug 28, 2013
Rupee at 68: Why RBI should reverse its illogical measuresThe RBI has no reason to continue with its tight liquidity policy that it introduced on the 15 July when the rupee was trading at levels of around 60.