Rupee may see volatile moves

Mumbai: The rupee may remain volatile this week as the market is waiting to see the election results due on May 23, dealers said.

"This week the election results will be the major factor. Exit poll results have attracted overseas inflows into the local stocks helping the rupee," said a dealer with a private sector bank.

However, some external factors like rising crude oil prices, weakness in Chinese yuan and US-China trade uncertainties will impact rupee, he added.

The rupee may trade in Rs 68.50-70.50/$1 range in the week to May 24 compared to Rs 69.80-70.92/$1 range in the previous week, a poll of 12 foreign exchange dealers showed on Monday.

"The actual results will have a variation of 10 per cent on either side of the current projections," said Param Sarma, Director and CEO of NSP Treasury Risk Management Services.

Sharma said growing tensions in the Middle East and the rising crude oil prices will halt the rupee's gains over 68.80. Any sharp rise in the rupee beyond the 68.50 mark will be curbed by active RBI intervention.

He predicted Rs 68.80-69.80/$1 range for the week with a likely overshoot of 30 paise on either side.

Some analysts pointed out the overall dollar strength and higher oil prices as major factors to be considered.

"Twin-blows are at play for Indian markets with global dollar and crude prices rising," said Hiren Sharma, Founder of Portia Advisory Services.

Brent futures for July delivery traded 0.47 per cent up at $72.55 a barrel on Monday.

— Ticker News Service