FII inflows to remain a booster

OUTLOOK/ Currency

The rupee is expected to trade in a range of 45.00 to 45.25 to the dollar. FII inflows are expected to continue and would put upward pressure on the currency.

The rupee could appreciate to 44.80 levels if the state run banks remain on the sidelines, said a dealer with a private sector bank.

Public sector banks, which act on behalf of the RBI, are expected to cap the rupee gains at 45 levels.

The market undertone is rupee bullish hence exporters are braced to bring back their receivables which would also add to the firmness in the rupee-dollar rate.

Recap: The dollar testing fresh depths against the euro last. It feel against the rupee too. The rupee appreciated 0.12 per cent. It had closed slightly weaker on Friday at 45.0950/1050 per dollar, marginally lower than Thursday's 45.0750/0850.

The RBI is ensuring that the rupee's appreciation is slow and gradual. The six-month forward dollar premium during the week fell to 1.76, a drop of 48 basis points over the previous week.