Ajay Mahajan, Group President-Finance Market, Institution and Investment Management, Yes Bank, said the mood in the market is to buy dollars on account of rising crude and international commodity prices. “We could potentially see Rs 42 in the immediate term and if that resistance gives in, we could actually see the dollar trading at a high of about Rs 43 levels to the rupee.”

Excerpts from CNBC-TV18's exclusive interview with Ajay Mahajan:

Q: Are you just looking for Mint Street to come in and give support, what will be the levels you will trade at, will you go long on dollars all the way till you see the RBI?

A: The market is clearly in a mood to buy the dollar for various reasons. The largest or most predominant reason at this moment is rising international prices of commodities which is leading the market to believe that exporters would probably step off, and the importers would certainly come in to cover their short-term positions. Led by crude and international commodity prices, most Asian currencies are reacting and so is the case with the dollar-rupee.

Q: Are you just looking at RBI and not looking at levels in particular? Do you think like the appreciation of March 2007, you are going to see some severe 10% depreciation now or do you think that Rs 41.50 could be fairly sacred level?

A: I don’t think this market will watch levels at this moment in time. We don’t think there is any targeted dollar-rupee rate that we should be looking at acting as a very strong resistance. We could potentially see Rs 42 in the immediate term and if that resistance gives in, we could actually see the dollar trading at a high of about Rs 43 levels to the rupee.