Rupee seen in 49.20-50.25 band: KN Dey, Basix Forex
The Dec IIP numbers, its lowest since mid-2009, were also disappointing. This week, the rupee is likely to trade between 49.20 and 50.25.
By ET Bureau | Updated:
Is RBI selling the US dollar at the fag end of Friday right for the market? I think no. Because no longer we can say the present rupee rate is market determined.
Last Friday, the rupee fell to 49.75 intra-day from Thursday’s close of 49.50, but recovered and closed at 49.40. Market sources pointed out to RBI selling at around 49.75. Demand from genuine importers kept the rupee slightly under pressure and the same would continue till the month-end.
With January’s trade deficit at $14.7 billion, the current account deficit for the March 2012 ending is likely to touch 3.5% of the gross domestic product, which is very high. The December IIP numbers, its lowest since mid-2009, were also disappointing. This week, the rupee is likely to trade between 49.20 and 50.25.
Last Friday, the rupee fell to 49.75 intra-day from Thursday’s close of 49.50, but recovered and closed at 49.40. Market sources pointed out to RBI selling at around 49.75. Demand from genuine importers kept the rupee slightly under pressure and the same would continue till the month-end.
With January’s trade deficit at $14.7 billion, the current account deficit for the March 2012 ending is likely to touch 3.5% of the gross domestic product, which is very high. The December IIP numbers, its lowest since mid-2009, were also disappointing. This week, the rupee is likely to trade between 49.20 and 50.25.
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