Even as export growth accelerated for the 3rd straight month, trade deficit widened to a 61-month high at US$ 16.6bn in Jun'18 due to higher oil (56.6%) and non-oil-non-gold imports (12.5% in Jun'18). Both are expected to remain elevated in the near-term. Hence, trade deficit will be higher in FY19. Higher trade deficit along with FPI outflows would put pressure on CAD and INR. INR has depreciated by 7.7% in CYTD18. However, a possible rate hike in...