Mint St To Stanch Steep Fall In Re

The spot rupee is expected to hover around 45.83-93 against the dollar during the week. The Reserve Bank of India (RBI) is likely to prevent a steep depreciation of the rupee by keeping it rangebound.

Some dealers feel the rupee will weaken in wake of the upcoming Resurgent India Bond (RIB) redemptions.

Last week, demand for dollars increased as banks sought to cover their own positions. This in turn resulted in forward premiums turning volatile.

Near term forwards went substantially as importers, mainly state-owned undertakings, started covering their open positions as the dollar gained ground against major global currencies.

While good US economic data is propelling the dollar