Rupee likely to remain stable

The rupee is expected to remain stable next week on the disbursement of loan tranche by the IMF, currency dealers said. The rupee lost much of the previous week’s gains, falling to over 105, but closed at 104.70/80 level by the end of the week.

“The currency pair should remain well within the range it is trading now, as the disbursement of $498.1 million tranche by the IMF after it approved the ninth review of the Extended Fund Facility will take foreign exchange reserves to fresh highs over $21 billion mark,” a dealer said.  “The IMF inflows will put positive impact on the exchange rate,” the dealer added.