See Rupee at 41/$ levels in June: IndusInd Bank

Ashit Parekh, Head of Forex at IndusInd Bank said that he sees the Rupee breaching 40.80/USD levels and may even touch 40.80-40.85/USD levels.He predicts the June level at around Rs 41.00/USD.  

Q: What is your own guess? Do you think this time around Rs 40.70-40.80/USD levels could be breached and we could see Rs 41/USD levels in a couple of weeks?

A: Yes. We could see it breaching around Rs 40.80/USD levels we may touch around Rs 40.80-40.85/USD levels. But I doubt it will sustain. We might see some very good export selling over there and it could come down again in the range of Rs40.60-40.75/USD levels.

Q: What is your own advice to importers and exporters? Are you advising exporters to sell at Rs 40.75-40.80/USD levels?

A: Yes definitely. The exporter should come in books on around Rs 40.75-40.80/USD levels because last time we saw a big move from Rs 40.75-40.80/USD all the way down to Rs 40.00/USD. So this time around they should take the chance and try and sell around Rs 40.75-40.80/USD. Above Rs40.85/USD levels the investor should wait and see till the figured level and then again sell it there.

Q: Slightly longer-term what is the expectation around June 30 and if you have an expectation around December 31, which way will the rupee head is it crossing Rs 41/USD levels or is it coming closer to Rs 40/USD levels and breaching even Rs 40/USD levels?

A: Around June end, I think there is a possibility of touching Rs 41USD levels. But when you are asking me for December, I don’t see it sustaining around that level. I think we might see it bringing down again to Rs 40.20/USD levels or even lower than that.