There is no stopping the rupee's slide. On Wednesday, the rupee breached the 61-mark against the dollar to end the day at 61.3.
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CNBC-TV18’s Latha Venkatesh is not that bearish on the rupee and wouldn’t call Wednesday a bad day at all despite its highest closing. According to her, the currency actually reasonably behaved yesterday. Some of this is because of the expectation that over the long weekend, government will announce some import control measures or may be some NRI deposit instruments.
The expectation is that policy will move and that is why the rupee behaved itself on Wednesday and will behave itself today as well.
Early morning cues are a bit mixed. Risk is off considering the way European markets and the US markets have performed with respect to comparable currencies like the Brazilian real, the Indonesian rupiah, it is too early to say anything at this point in time.
The dollar seems to have had a slightly upper hand and should therefore, open higher today, higher than 61.26-61.30 or thereabouts. But the cues are still very nebulous.
“I won't expect fireworks in the rupee today. I think 61.40 will be some kind of resistance and the markets will look forward to announcements over the weekend. It will be a ranged day,” she adds.