Below is Quote on Evening Currency Updates by Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives, Kotak Securities
After two weeks of low volatility, USDINR saw some decent two-way moves. Prices oscillated between 74.35 and 75.10 levels. However, the month-old range between 74.20 to 75.10 remains intact. The reason being RBI remains a major buyer of US Dollars at lower levels and corporate $ flows and FDI inflows are capping the upside. The end result is a range of 1%.
Next week prices may continue in the current range as long as RBI remains a major buyer of US Dollars. The US central bank meeting on Wednesday is not expected to deliver any new information and hence would keep USDINR within 74.20 and 75.00 range. IPO-related FPI flows may pick up over the next week.
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