Rupee to Appreciate Further, RBI Unlikely to Intervene: Bank of America's Vikas Jain

• Vikas Jain, Head of India FICC Trading at Bank of America, expects the rupee to appreciate by another 1.5-2% in the next couple of months, targeting 88.60-89 against the dollar by March-end.
• RBI is unlikely to actively intervene in the foreign exchange market or accumulate reserves soon, despite high forex reserves, as the rupee still has room to move higher.
• The US-India trade deal has changed currency market dynamics, strengthening sentiment-driven demand for the rupee, with FPIs expected to reduce selling and increase buying.
• February and March are seasonally strong months for the rupee, supported by an expected positive current account.
• Bond markets have shown a muted reaction to the trade deal, as it doesn't directly impact them, with yields primarily influenced by the Budget's gross borrowing numbers.