BLOOMBERG POLL SHOWS OPTIMISM AMONG INDIA FX ...

BLOOMBERG POLL SHOWS OPTIMISM AMONG INDIA FX EXECUTIVES Banking, treasury and FX specialists expect the rupee to be the best performing Asian currency in 2016 and RBI Governor Rajan to get an extension Mumbai, May 24, 2016 -- A Bloomberg survey conducted among banking and foreign exchange executives at a FX16 India event suggests that more participants expect the rupee to be the best performing currency in Asia against the US dollar in 2016. In addition, over three quarters of market participants polled expect Raghuram Rajan to stay on as India's central bank governor after his term ends in September. More than 300 corporate and finance executives convened at a FX16 event in Mumbai on May 13, hosted by Bloomberg, the global leader in financial data, analytics and technology. Results of a sample poll show that 43% of market participants surveyed expect the Indian rupee to be the best performing Asian currency against the US dollar this year, followed closely by the Japanese yen (40%). Very few expect a strong showing against the US dollar for the Indonesia rupiah (8%), Malaysia ringgit (4%) and Chinese yuan (3%). External forces, notably the Chinese economy (41%) and a US rate hike (33%) were viewed as primary macro issues affecting the rupee. The interactive poll also revealed that three quarters of respondents expect the USD-rupee exchange rate to remain in the 66-68 range (58%), and the rest was split between the USDrupee rate going below 68 (22%) and above 66 (20%). Two-thirds of participants expect Asian currencies to be down against the US dollar in 2016, with 16% saying "down a lot." In view of foreign exchange reserves in India being at a record high this year, 90% of respondents were either 'very comfortable' or 'somewhat comfortable' that current foreign exchange levels will provide sufficient cushion for external shocks. When asked what poses the greatest FX challenge for firms in India, the two biggest issues were 'managing currency exposures' (34%) and 'hedging against market volatility' (29%). Others felt 'navigating regulatory requirements' (12%), 'reducing operating costs' (12%) and 'market structure changes' (12%) were challenges they had to face. "The poll and FX16 Mumbai are part of our continued effort to bring information to the market, as we mark 20 years in India this year," said Sunny Chhabria, Bloomberg's Head of South Asia sales. "With foreign investor interest at an all-time high, it becomes imperative for the global investor community to gain insight into market sentiment, including key foreign exchange challenges and opportunities Indian corporations and banks are facing."

At Bloomberg's FX16 Mumbai, discussions centered on the major trends influencing the outlook for the rupee in 2016 and beyond, with speakers from Standard Chartered Bank, HDFC Bank, Tata Consultancy Services and State Bank of India. About Bloomberg Bloomberg, the global business and financial information and news leader, gives influential decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company’s strength – delivering data, news and analytics through innovative technology, quickly and accurately – is at the core of the Bloomberg Professional service, which provides real time financial information to more than 327,000 subscribers globally. For more information, visit www.bloomberg.com/company or request a demo. Media Contacts Bloomberg  APAC, Belina Tan, +65-6231-3637, [email protected]  EMEA, Anna Schoeffler, +44-20-3525-0776, [email protected]  U.S. Vera Newhouse, +212-617-6420, [email protected]  LATAM, Pam Snook, +212-617-7652, [email protected]