Expect rupee to trade in 58-61 range in near term: NS Venkatesh, IDBI Bank

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

ET Now: The finance minister said that there will only be intervention in order to curb volatility and that, there is no specific level that the RBI is tracking. It is always difficult to predict, but do you think that we are likely to remain confined to tight range when it comes to the currency?

NS Venkatesh: The stand of RBI has always been to ensure that they smoothen the volatility. That is being reiterated even at the government level. Maybe the rear could be a broad indicator as to what should be the levels at which the currency should trade in the normal course. But then, the rear sometimes also gets affected by the capital flows that are coming in. Looking at it from that angle, I believe that maybe a range of, say, around 58 to 61 is the narrow range within which the currency should be trading.