New Delhi: The rupee ended higher at Rs 45.34 against its previous close of Rs 45.41 to the dollar. It was supported by foreign fund and corporate dollar inflows.
The widely traded 8.07 per cent, 2017 paper closed lower at Rs 106.40 against its previous close of Rs 106.51.
Excerpts from an interview with, Sucheta Mehta of Standard Chartered Bank, on CNBC-TV18
Q: What that mean for rupee dollar? Would that mean more FII flows? Would that mean a more bullish view on rupee?
For rupee, we were looking at some near term strength coming through. That is largely because market positioning as well as strong flows coming through. Now should the dollar weaken decisively against most of the currencies in particular Yen and Euro.
We might see rupee kind of consolidate to modestly strengthen as we move along. Plus portfolio allocations into 2006, given that India?s growth story is still very much intact would lead to some flows coming through into the system. On fundamental basis, rupee is still remain weak; that is on valuation basis. But on basis of flows and dollar decline globally, the rupee may indeed consolidate to strength.
Q: What levels exactly?
We are looking at Rs 45.50 for March, which is slightly weaker than what it is right now but about Rs 44.20-44.30 by the end of December next year.
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