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Don't expect much appreciation in rupee from here: HDFC Bank's Bhaskar Panda

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Don't expect much appreciation in rupee from here: HDFC Bank's Bhaskar Panda

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Indian rupee appreciated 4 paise to 73.25 against US dollar in opening trade on Tuesday, tracking a positive trend in domestic equities. At the interbank foreign exchange, rupee opened at 73.26 against dollar, then inched higher to 73.25, up 4 paise over its previous close.

Bhaskar Panda, executive vice-president and head of overseas treasury at HDFC Bank, on Tuesday, said he does not expect much appreciation in rupee from here.
Indian rupee appreciated 4 paise to 73.25 against US dollar in opening trade on Tuesday, tracking a positive trend in domestic equities. At the interbank foreign exchange, rupee opened at 73.26 against dollar, then inched higher to 73.25, up 4 paise over its previous close.
In an interview with CNBC-TV18, Panda said, “The next level to look at is 72.79-72.80, which was low in May. Technically that level has been very solid for many months. So, I do not see it breaking in next few weeks or months unless the Asian currencies appreciate, which now is not a possibility because of the problems that are happening in China purchasing managers' index (PMI) etc.”
On other currencies, he said, “Other Asian currencies have appreciated against the dollar and that is the biggest factor, in my opinion, for the recent rupee gain. Obviously, before Jackson Hole people had been positioned in a different manner and they have to unwind those positions. However, that is not the biggest factor in my opinion. My opinion is that the global factor has changed and I don't think any central bank will like to be standing against the flow of the global factors, which has changed.”
“Having said that, I must add that too much rupee appreciation from here may not be warranted first thing. The second thing, maybe we will come to an end of this downward rally. So, rupee appreciation towards 72.79 and 72.80 kinds of levels have held for quite a long time. Therefore, I don't think there will be too much appreciation going forward from here, but yes, 72.80 can break,” Panda said.
(With inputs from PTI)
For the entire interview, watch the video
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