Global financial services firm Bank of America-Merrill Lynch (BofA-ML) on Thursday warned that if current Indian economic scenario continues than the Rupee may plunge to 75 per US Dollar by the end of 2014.
Seeing the current economic scenario of large-deficit countries including India, even Global rating agency Standard & Poor’s on Wednesday cautioned the country of facing serious economic crisis in the near future.
The Bank of America also cautioned the RBI to immediately stepin and take necessary step to curb Rupee’s slide.
Meanwhile, the Reserve Bank of India in order to check the battered domestic currency in its new policy will provide dollars directly to State oil companies.
The central bank announced it on late Wednesday to sell dollars through a designated bank to Indian Oil Corp Ltd (IOC.NS), Hindustan Petroleum Corp (HPCL.NS), and Bharat Petroleum Corp ‘until further notice’.