NEW DELHI (PTI): There is considerable speculation in the foreign exchange market on how the rupee will behave in the coming weeks with the forward premia on dollar purchases for long dates remaining larger than those for near dates.
While some analysts feel this indicates a lack of confidence on the strength of the rupee against the value of the dollar others think intervention by the Reserve Bank of India (RBI) and State Bank of India (SBI) will prevent the rupee from losing against the dollar, financial express reports say.
Both RBI and SBI have ample stocks of the dollar and will be able to stabilize prices if required.
Prophecies regarding fall of rupee value emanate from the fact that Indian Oil Corporation (IOC) will make bigger purchases late this year, compared to the small lots they have been buying till now.
Article extracted from this publication >> June 18, 1993
