Expect rupee to trade between 58 and 61 going forward: NS Venkatesh, IDBI Bank

In a chat with ET Now, NS Venkatesh, Executive Director of IDBI Bank, shares his outlook for the currency. Excerpts:

ET Now: What would you say about the weakness that we are seeing in the currency? Would you purely put it down to what is happening overseas with respect to the dollar? Also, are we likely to remain confined to this range or will it depreciate further?

NS Venkatesh: I personally believe that the rupee should trade anywhere between 58 and 61 in the broader channel and that is what is happening at this particular juncture. It is at around 61.40-61.43 levels.

This is happening essentially because of the external situation - whether it is the Ukraine issue or whether it is about Europe not doing well. Hence, it is a temporary thing.

Hopefully with our economy doing well, we should see the rupee having a strengthening bias - more so if the inflation is brought under control. In that situation, the inflation differential between the developed markets and India should be narrowing down, which will be a positive for the rupee. Hence, the rupee should have a strengthening bias going from here.