Expect sideways movement for both rupee & yield until Fed gives clear signal: Mythili Bhusnurmath

Mythili Bhusnurmath, Consulting Editor, ET Now, shares her macroeconomic outlook. Excerpts:

ET Now: How are you looking at the key indicators — the yield and the rupee?

Mythili Bhusnurmath: We are going to see sideways movements for a while. Until we get a clear signal from the Fed, we are not going to see very much movement one way or the other.

As far as the rupee is concerned, there has been talk about the need for the Reserve Bank of India to do something. The RBI, although not reluctant, hasn't been very active on that front. So there will be a gradual weakening in the rupee. But it will not be very significantly.

So, by and large, I see a sideways movement happening. It's because no dramatic change is going to happen both on the CPI as well as the IIP data.

In fact, I do not think we will have any surprises on the rupee as well as the yield front. The same slow and painful recovery is likely to continue.