Rupee's rollercoaster ride to continue, may open at 66.80/$

The rupee closed at an all-time low of 66.25 to the dollar on Tuesday despite the Finance Minister's reassurance that the rout is exaggerated.

Today, it doesn’t look like a very good morning of trade for practically any asset class except the safe havens like gold and bonds, but one must expect the rollercoaster that started off yesterday to continue today, predicts CNBC-TV18’s executive editor, Latha Venkatesh.

Dealers are suspecting the rupee could open as low as 66.80/USD or thereabouts just shy of 67/USD. It is a great place to sell dollars, but nobody is willing to sell because no-one knows how bad it can get. There are memories of the Iraq war, when we saw a vertical leap in crude and dollar prices. So this is something similar or at least the fear of dollar and gold getting very expensive is certainly pervasive in the market, she added.

One can expect a very weak start to the rupee. The way ahead will depend on what the Reserve Bank of India (RBI) does.