RBI move can help cap rupee slide at 72 levels, says Nizam Idris

The RBI has a lot of reserves and the purpose of accumulating them is, to a large degree, to help battle massive pressure on the currency, says Nizam Idris

A steady rise in crude oil prices and the possibility of rate hikes by the US Federal Reserve pushed the rupee to a 16-month low on Wednesday. Singapore-based Nizam Idris, managing director, head of strategy – fixed income and currencies, Macquarie Bank, tells Puneet Wadhwa that the rupee can easily hit 70.0 against the dollar. Edited excerpts:

What is your outlook for the Indian rupee?

Given the broad current market conditions, the rupee can easily hit 70.0 against the dollar, not just driven by domestic factors but also the rising broad pressure on Emerging Market (EM) currencies as funding costs