Corporates expect rupee to slide to 58 per dollar: ING Vysya survey

The corporate sector expects the rupee to weaken further to a low of 58 to the dollar, according to a majority of respondents in a survey of 220 organisations conducted by ING Vysya.

A majority of 440 respondents expect that the rupee to fall as low as 58 against the US dollar in the near-term, with 15 per cent  saying that the rupee could break the Rs60 mark against the US dollar.

Most of the respondeeents were of the view that relaxing the foreign exchange rules by the Reserve Bank of India (RBI) would not have any impact on their hedging plans.

The survey revealed that exporters were unlikely to hedge more because of short-term prospect of a weak rupee and would want to catch better levels and avoid mark-to-market losses.

According to Standard Chartered, the rupee may touch 58.60 against the dollar due to technical weakness, while Morgan Stanley expects the rupee to cross 60 and touch 62.70 against the dollar.

The rupee had opened stronger at 55.50 in today's trading, but fell to 55.68 with the European markets opening lower.