Border Situation, Us-Iraq Developments Hold Key
The Indian unit is likely to continue its trend of appreciation against the greenback this week and will trade in a range if 48.65-75 per dollar.
The factors that will be kept a watch on include the situation in the India-Pakistan border, apart from the situation in the Middle East and the positioning taken by the United States in its standoff with Iraq.
The rupee crossed the 48.70 per dollar mark this week on heavy selling pressure to touch 47.6950 on Friday, though it wrapped up last week at 47.7050/71.
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Public sector banks have not been supporting the rupee from appreciating the way they were doing before. Dealers attribute this on the fear that dollar buying could increase the liquidity in the market, which, in turn, would lead to falling yields in the market.
Public sector banks were also seen selling dollars near at around 47.75/76 when the rupee had started showing signs of depreciation and volatility before US secretary of state Colin Powell