Rupee may open at 59.70/$; more weakness in store

The rupee ended at 59.68 against the dollar on Monday and is likely to be under pressure today and open at 59.70/USD today, believes Latha Venkatesh, CNBC-TV18. According to her, continuous outflow of dollars by foreign institutional investors(FIIs) sell-off in equities and bonds will put pressure on the currency.

However, since Asian markets have opened mixed today and Asian currencies have opened with dollar on downbeat versus Asian currencies although the dollar index is higher versus dollar Asia, seems like there is almost a uniform rebound strength in Asian currency. The rupee's movement will also depend on the course of equity markets. There is not much pressure coming from bonds because overnight, after going to 2.6 percent, the US 10-year settled at 2.5 percent, which is much similar to Monday’s levels. The connection with Asian currencies is coming off a bit. So, chances are that the rupee will start where it ended and then see a little more weakness.