The Hindu Business Line : Rupee touches 46

The rupee gained slightly against the dollar on exporter selling while touching 46 during day trade. The rupee opened at around 45.99 and touched 46 on dollar buying. However, it recovered to end at 45.92/93, against the previous close of 45.95. "The range for the rupee is between 45.85 and 46. It seems strong in the medium term and we expect it to touch 45.55 by October," said a forex dealer with a private bank. The general expectation is that the US Federal Reserve may reverse the rate hike. "After 17 consecutive rate hikes a time lag is required for the effect to roll out. Also, the price effect of crude on inflation is less, as oil prices are seen slipping below $55 for a barrel," the dealer said.

The likely situation over the next six months is that emerging markets and the rupee in particular could find support, the dealer added. The dollar was weak against the yen, but strong against the euro and pound, a dealer said. The six-month premium closed at 1.3 per cent (1.25 per cent) and the one-year closed at 1.31 per cent (1.29 per cent).

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