Abhishek Goenka

RBI has drawn a line in the sand on rupee volatility. With NOP caps, arbitrage unwinding, and possible FCNR moves - the central bank is stepping in decisively. But will it be enough>

The rupee weakened past the 40 mark and went all the way to 52 in no time, and has been depreciating steadily ever since

Receiving longer tenor, therefore, looks a good proposition considering the steepness of the curve. Near-end is likely to remain anchored on account of abundant Rupee liquidity in the banking system

The dollar index may once again move towards 85 level pushing the rupee to new lows, that is towards 57.5-58 by mid-2013