May 29, 2013 12:17 PM IST | Source: CNBC-TV18

Rupee to remain weak; resistance seen at 56.20: Axis Bank

The rupee may resistance at 56.20/USD going ahead. Any fall in global commodity prices will aid rupee's movement, says Ashok Gautam of Axis Bank.

The weakness seen in the rupee is likely to continue and it may open higher than 56/USD today, Ashok Gautam of Axis Bank said in an interview to CNBC-TV18.

The rupee closed at 55.47 to the dollar versus 55.41 on Tuesday. The Indian currency might find resistance at 56.20/USD, however, if this level is breached then the rupee may head higher, he cautioned.

Below is the edited transcript of Ashok Gautam's interview with CNBC-TV18

Q: What would you expect on the rupee today after the weakness we saw yesterday?

A: A bit of weakness might continue. We may see the rupee opening little bit higher than 56/USD today because last night it closed around 55.97/USD so we may see 3-4 paise weakness. .

Q: The recent weakness that we have seen in the rupee is there any fundamental cause of concern over here or do you think it is just month end imported demand and the strength we are seeing dollar?

A: The dollar strength, which is now being reflected in the weakness of the rupee, will continue. We have our own concerns regarding current account deficit, which is having its impact on the rupee movement.

However, going forward we see some softening in commodity worldwide, which might help the rupee. But at this point of time, we might test level of 56.20/USD, which is a strong resistance. I hope that level is not breached, after that I see on the charts rupee moving much higher.

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