Under pressure Re to be around 53.50 after 14 days: IDBI

Despite the RBI asking exporters to convert half of their forex into rupees last week, there has been no great relief to the currency. NS Venkatesh, chief general manager and head-treasury, IDBI Bank explains to CNBC-TV18 the possible trajectory and levels of the rupee.

"The action of RBI has asked the exporters to surrender 50% within a timeframe of 14 days. So over a 14-day period, USD 2.5 billion should come back into the system. But there is still an underlying pressure of the structural issues and that is why the rupee hovers at 53.79 - 53.80." Also watch the accompanying video
"The effect on the rupee has also accentuated by the euro's decline of around 20 basis points due to the political crisis in Greece and maybe tomorrow’s crucial meeting between Merkel and Hollande on decisions relating to the austerity drive. Add to this the current account deficit ruling higher at around 4%."
Venkatesh adds that after the time-frame of 14 days when USD 2.5 billion would come into the system, the rupee would hover at 52.80 - 53.50 levels.