Spot Seen Stable, Forwards Ranged

FOREX Market

The spot rupee is expected to remain stable and range bound between 43.63 and 43.67 this week. Forwards too are seen range bound with no auctions coming up.

Spot, last week, saw very little action, moving less than two paise.

"There is not much movement expected through the week," affirmed a dealer with a private sector bank. "The supply of dollars is good and matches up to more than the demand," he added.

Forwards are expected to remain close to the existing range of the earlier week.

"The forwards are going to remain just where they are, moving 3 to 4 paise either ways,"

said a dealer from a private sector bank.

The six-month annualised is likely to be around 2.30-2.60 per cent, while the 12-month annualised could be around 2.70-2.85 per cent.

The forwards saw some dip in their values last week. The longer-end coming off nearly 2 to 4 paise every day.

The shorter end also saw a drop of 3 to 4 paise.

With premiums at extremely low levels, importers are advised to wait for at least two to three weeks.

"They need not book right now, but should buy at value cash," said a dealer with a foreign bank. "Unless there is a big parameter that comes forth, importers should remain unhedged for the coming week," said a dealer with a private sector bank.

Exporters cannot anything but stay away.

Said a dealer with a foreign bank, "The market is going in no apparent direction, neither the spot nor the forwards. They should get their realisations and can book some uptakes," said a dealer from a private sector bank.