Sunday, May 27, 2007

India's Rupee May Decline on Central Bank Sales of Currency, Survey Shows

(Bloomberg) -- The Indian rupee, the best performing
Asian currency this year, will decline as the central bank sells
it to protect the nation's exporters, a survey of traders shows.

A slowdown in the pace of inflation to an eight-month low
may give the Reserve Bank of India room to increase rupee sales,
after scaling back dollar purchases in March and April. The
currency gained 9 percent this year to a nine-year high, helping
reduce the cost of imports and pressure for price increases.


Read more at Bloomberg Currencies News

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