Reuters Market Eye - UBS says rupee could hit 56 to the dollar, which would mark a record low. UBS cites prospect of slowing flows on the back of India's "severe" deficit drag, the need to "repair" the country's balance sheet and regulatory ambiguity that has reached a "crisis point."
"In these conditions, there is very little policy easing. So companies and government must now become more efficient if they want to retain/induce that extra dollar from overseas," UBS' economist Philip Wyatt says in the report.
(Reporting By Aditya Phatak and Rafael Nam; Editing by Aradhana Aravindan)
