Rupee may see volatile moves

Currency may trade in 68.50-70.50/$1 range

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 USChina 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 68.8069.80/$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.

— TickerNews Service New Delhi, May 20: Dairy major Amul said on Monday it will increase milk prices by Rs 2 per litre in Delhi NCR, Maharashtra and other states from Tuesday due to an increase in production cost.

Milk prices were last revised two years back in March 2017, Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells milk and milk products under the Amul brand said. The new price will come into effect from May 21 onwards and on all six brands being sold in major markets of Delhi-NCR, Gujarat, West Bengal, Kolkata, Uttaranchal, Maharasthra and other states, the GCMMF said.

The revised price of 500milliliter (ml) pack of 'Amul Gold' in Ahmedabad will be Rs 27, 'Amul Shakti' at Rs 25, 'Amul Taaza' at Rs 21 and 'Amul Diamond' at Rs 28, it said.

There has been no change in cow milk prices in Gujarat, the cooperative added. "This increase in milk prices by Rs 2 per litre has happened after a gap of two years with an aim to provide remunerative milk purchase price to our milk producers owing to drop in milk production and increase in cost of production," GCMMF said. —