Silver likely to see sharp corrections ahead: Anand Rathi

In an interview with CNBC-TV18, Kishore Narne of Anand Rathi Commodities gave his readings and outlook for the currency and commodity markets.

Below is the verbatim transcript of his interview with Latha Venkatesh and Anuj Singhal of CNBC-TV18. Also watch the accompanying video. Q: There has been a decent amount of volume in the currency futures markets, infact volume is next only to Nifty, it is higher than every other instrument in the market, what is a good trade, why this rush of volume and what is your trading strategy on the dollar-rupee? A: Volume obviously is picking up because a lot of corporate participation is coming out of the exchange. Lot of people are recognizing that the need of hedging rupee-dollar exposure because of the recent volatility. For today, there is a spike because of the expiry also. Coming to the view, in the short-term we should see some more weakness in the rupee probably towards around 44.70-44.75 levels on the spot. So that should be an ideal point where you can go and book your forward receivables kind of a scenario. In the medium-term if we are looking at three- four months still I believe probably we might have one more spurt in the rupee towards around 43-43.50 levels. Q: What about the euro, either the euro-dollar or the euro-rupee, if you can tell us what is the movement in the trades and whether there are pair strategies that you can suggest with dollar-rupee and euro-rupee? A: The most strongest in the currencies at this point of time is looking JPY i.e. the Japanese Yen because the kind of money which is flowing back into Japan. Probably, the intervention which G-20 has promised is not coming because until unless it breaks that 80 mark, I don