“The market has priced in, by various degrees, policy support not only from ECB but also the Fed. We expect more subdued impact if the Fed goes ahead with additional quantitative easing and ECB’s actions will probably be more restricted to the broad euro direction.
‘‘Thus, the rupee could get a small lift but the contentious issue remains domestic conditions, namely growth and inflation outlook. At this point of time, the dichotomy between faltering growth and elevated inflation has not really shifted much, which will continue to cloud the rupee’s outlook.”
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