US dollar seen reaching Rs. 163
View(s):The US dollar has been slowly creeping up to the Rs. 161 level this week with concern that it could be pegged at Rs. 163 in coming months.
“The dollar has been creeping up slowly with no intervention from the Central Bank (CB),” said one money market dealer adding that the CB appeared to be more interested in inflation policy with monetary policy being given the cold shoulder.
Some dealers also said that if the market demand and supply further depreciates the rupee to the Rs. 163 level, the CB is likely to intervene since these levels – which would increase import prices – would be negative to a government facing elections in coming months.