Rupee Seen In 47.10-.20 Range

The spot rupee is expected to keep a 47.10-47.20 range against the dollar this week as some month-end demands are likely in the first half. Forward premiums should continue to track overnight call rates.

"The spot rupee should maintain a range of 47.12 to 47.20 and it is unlikely to breach the 47.21 level, its all-time low of July 3," a dealer with a new private sector bank said.

According to a dealer with a foreign bank, the local currency may face some pressure towards the weekend only in case of any political uncertainty. "Otherwise the rupee will keep a narrow range. It should receive some support at the 47.10 level and if the decline is sharp, nationalised banks might lend support," he said.

On Friday, the rupee opened slightly weak at 47.1650 and touched an intra-day low of 47.17. It closed at 47.1425. The Reserve Bank of India's reference rate for the dollar was 47.16.

Forward premiums should track overnight rates during the week. The six-month annualised premium should keep a 4.75-4.80 per cent band, while the one-month annualised premium would remain rangebound between 4.65 per cent and 4.75 per cent.

"Premiums should continue tracking call rates," a dealer with a new private sector bank said, adding, "The six-month annualised premium is likely to keep a 4.70-4.85 per cent band."

On Friday, the six-month annualised premium closed at 4.76 per cent, while the one-year annualised at 4.80 per cent.

"The direction of the market has been set and most premiums are going in a downward direction," a dealer with a private sector bank said.