Strong Run For The Rupee Foreseen

Spot rupee is expected to hover in the 45.85-46 per dollar range this week, primarily supported by foreign institutional investor (FII) inflows.

Participants feel that except for the intervention by the Reserve Bank of India (RBI), there is fundamentally no reason for the rupee to go down against the greenback this week.

In fact, dealers said the local currency could breach the 45.50/dollar level if the RBI keeps away.

At a seminar held by forex dealers last week in Mumbai, the Reserve Bank of India governor Bimal Jalan made it clear that the inflows are coming into India not just because of the arbitrage opportunity. He said there is little advantage left now.

 

He stated present inflows are linked to India