Rupee likely to remain firm

The rupee is expected to remain stable against the dollar next week, analysts said. “It seems that the dollar inflows could be sufficient to cover the demand at the interbank market,” an analyst said.

“The rupee/dollar parity is likely to be hovered in the narrow band of 104.75 and 104.85.” However, the local currency could face some downside pressure by the end of this month due to weak macroeconomic indicators.

The foreign exchange reserves dropped for the fourth consecutive week to close at $23.344 billion, while exports and remittances edged lower.