The Indian rupee slipped to a record closing low of 61.10 against the dollar on Friday.
According to CNBC-TV18’s Latha Venkatesh market is seriously worried, 61.21 is a very important level and if breached it can lead to panic in the market.
Chances are that the Reserve Bank of India (RBI) may try and defend this level. It will not allow rupee to breach it. More importantly, it is possible that the rupee may get some help from the fact that the dollar is weaker against several Asian currencies. It was quite weak against the Brazilian real when it closed on Friday, said Venkatesh.
“Today we are getting an early sign that some of the Asian currencies are holding against the dollar. So the rupee may not start very badly especially if equity market holds out,” she added.
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