This Article is From Jun 11, 2013

Rupee likely to breach 60 mark against dollar: CLSA

The Indian rupee will eventually weaken to cross the 60 mark against the dollar, global investment bank CLSA said on Tuesday.

CLSA's comments have come on the back of fresh weakness in the Indian currency, which hit a new record low of 58.36 against the greenback in early trade. (Read the full story here)

The Indian rupee has depreciated nearly 8 per cent since May 1, making it the worst performing currency in Asia.

CLSA said further depreciation in the rupee is likely to happen in sustained manner.

Market analyst Sarvendra Srivastava is even more bearish on the currency.

"The rupee-dollar setup looks "scary" and the local unit is on track to hit 62 against the greenback in 15-20 working days," he said.

Moses Harding of IndusInd Bank told NDTV that 57.50 was the last line of defense and the rupee is now in an unchartered territory.

Last month, Rohit Srivastava of Sharekhan told NDTV that the U.S. dollar has surpassed November 2012 highs and it would not be surprising if the rupee crosses the 60 mark against the greenback.

The Reserve Bank has followed a hands-off approach towards the rupee, CLSA added.

Other analysts said the central bank can do little to prevent the sharp fall in the currency.

 The Reserve Bank does not have enough dollar reserves and surplus rupee in the system to defend the rupee aggressively, Mr Harding said.