A Choppy Run Portended

The rupee is likely to be volatile this week. It is likely to appreciate at the start and depending on the situation in the Middle East, could depreciate.

The Indian unit is likely to trade in a broad range of 47.75-90 against the dollar this week. It was very volatile last week too.

It rose to a high of 47.68/69 and also reached a low of 47.90/92.

Compared with the last few weeks there was a good amount of corporate demand which hit the market from some media and consumer companies.

There was also demand from oil companies and telecom companies.

Dealers feel that these companies wanted to cover their positions before February 14. However as February 13 was a holiday they entered the market on February 11 and 12.

Even as the RBI was active in the market it is likely to have mopped up a lower amount compared with the week ended February 7, where it mopped up $1.08 billion.

Demand was more than supplies the last week. Dealers are looking at whether other corporates are also likely to enter the fray and cover the positions in the market.

The positive comments given by the United Nations