The spot rupee should rule between 47.09 and 47.16 against the US dollar this week, with no surprises expected. Forward premiums, too, are seen keeping a narrow range, dipping towards the end of the week.
"The spot rupee is likely to continue in a stable vein, maintaining a range of 47.10 to 47.15. Regular demand and supplies from corporates should keep the local currency rangebound. On Friday, the rupee ended marginally higher at 47.1125, as against Thursday's close of 47.1225," said a dealer with a new private sector bank.
On Friday, the rupee kept a narrow range of 47.11 to 47.13. Volumes continued to remain scarce.
More From This Section
"The rupee ended slightly up due to supplies that came in the latter half of the day," the dealer added.
"The spot rupee should keep a range of 47.09 to 47.15 this week, with no big movements on cards. Even after downgrades of the sovereign rating and revision in outlook, the rupee has held its ground. Therefore, with no major event expected this week, the local unit should continue to stay in the same range," said a dealer with a foreign bank.
Forward premiums should continue their downward move this week, with a softer bias. The 6 months (annualised) premium should keep a wide range of 4.65 per cent to 4.85 per cent.
"The premiums, as the case with the spot rupee, did not react in a volatile manner to the news of downgrades by global rating agencies. So, premiums should continue coming off by another few basis points," said a foreign exchange dealer.
On Friday, the 6 months (annualised) premium ended the day 4.73 per cent. The one-year (annualised) should keep a range of 4.70 per cent to 4.90 per cent.
"The coming week should be a relatively stable one for the spot rupee as well the forward premiums. The spot should keep a range of 47.10 to 47.18, while the 6 months (annualised) and the one year (annualised) premiums should remain ranged between 4.65 per cent and 4.90 per cent," said a dealer with a private sector bank.
Importers are advised to hedge on cash basis while exporters should sell if the rupee touches 47.15.