USD-INR to remain volatile in 64.50-65.50 range: Tirthankar Patnaik

Tirthankar Patnaik of Mizuho Bank said, "The USD-INR to remain volatile in the range 64.50-65.50 in the near term, with increased volatility driven around the second phase of the Gujarat elections today, and release of the exit polls later in the day."

He further added, "The sharp, and to some extent unanticipated rise in consumer inflation, should it continue further raises fears of a marked revision in the central banks rate stance. This would sustain pressure on yields and the INR in the medium term, supported by the Fed's rate hike last night."

"BoP figures released yesterday, while improving QoQ from the 2%+/GDP CAD levels seen in Q1FY18, remain a matter of concern, driven by a steadily widening trade deficit, now over USD 130 billion on a 12-month rolling basis. We expect the 10-year yield to trade around 7.15-7.30 percent," he added.