Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty?

Agum Gupta , the Head of Forex Trading at Standard Chartered Bank told CNBC-TV18 that, there is a chance that the dollar may further see a bounce up towards 40 levels. He adds that there will be a bout of rupee appreciation in the first quarter initially though the current account concerns might come up again.

 

Excerpts from the exclusive interview with Agam Gupta:

 

Q: What is the view on the dollar going forward, is there an expectation that looking at the dollar's strength versus most currencies and the fact that FII flows have not been all that gung ho, would you see a goodish amount of dollar appreciation and rupee depreciation even before the year is out?

 

A: Yes, there is a chance that the dollar further sees a bounce up towards Rs 40 levels, we do not expect it to go higher than Rs 40 but there is a chance that we will see a bounce upto Rs  39.90-40, which I think will be a big resistance and you will see a lot of exporter interest at those levels.

 

Q: What is the forecast for the first quarter of 2008 itself, do you expect this kind of dollar appreciation theme to continue into the first quarter as well?

 

A: I think coming January if the global situation becomes more certain and less jittery, there will be inflows again coming into the country and I think there will be a bout of rupee appreciation in the first quarter initially but there is a view that the current account concerns might come up again, in fact our in-house forecast is 40.5 for the end of the March.