Rupee to breach 61/$ again; eyes on more policy measures

The Indian rupee will open gap down and 61/USD will be taken in the first few minutes of trading, believes Latha Venkatesh of CNBC-TV18. Volatility continues to haunt the Indian currency. The pullback seen in late trade on Tuesday will not continue this morning. That was an artificial pullback. It is common practice at least in the past several weeks for the RBI to come and take the rupee where it wants.

Also read: Govt to announce series of steps to stem rupee fall

However, one sees pressure building up on the rupee even today. The dollar is largely marginally stronger against most Asian currencies, most currencies comparable to Indian rupee. Therefore, 61/USD will be taken in the first few seconds of trading is a given but what happens thereafter, much will depend on how the equity market move. That seminal fall can affect also how the RBI responds. There is a lot of expectation that some policy measures will be announced later.