Indian rupee opens higher by 160 paise at 67.20/dollar

Indian rupee recovered quite sharply in early trade Thursday, rising 160 paise to open at 67.20 per dollar.

The currency had closed at an all-time low of 68.80 against the dollar in previous session. For latest rupee value, click here Experts say this may be a relief rally, but the depreciation may continue in rupee. Claudio Piron of Bank of America Merrill Lynch feels that the rupee continues to depreciate and we have to wait for the current account to correct and assume less foreign institutional investor inflows under Fed QE tapering. "A conservative estimate is rupee goes to 70/USD by year-end and to 75/USD by the end of 2014. Among likely policy action are NRI bond issuance, rate hikes and capital controls," he adds. The dollar rallies on Syria fears as US officials are quoted as saying they are beyond the point of no return. The euro is by & large steady at 1.33/USD levels and the yen trades sub 98/USD.