D-St Week Ahead: FX/debt seen quiet amid holidays

No domestic events are scheduled ahead of the RBI's monetary policy review on October 30.

The rupee which hit a one-month low on Friday is seen stabilising, and is expected to hold in a 53.00 to 54.50 band next week, with exporters expected to step in to sell dollars.

The impact of earnings reports on Sensex will be watched. Euro moves and broader global risk sentiment should also provide cues.

The bond market is seen range-bound, with the benchmark 10-year debt expected to hold between the 8.10 to 8.20 percent band until the RBI review.

Despite some talk of potential bond buybacks via open market operations, after repo borrowings rose to a near four-month high of over 1 trillion rupees on Thursday, analysts see this as unlikely given the lack of debt auction for the week.

Cash rates may edge up slightly due to the higher demand for cash from individuals and companies in the festival season.

Banks are also expected to over-cover their mandated reserve needs in the first week of the two-week reporting cycle.

KEY EVENTS:

Monday: Monthly unused foreign investor debt limits auction

Wednesday: Markets holiday Friday: Forex reserves data (5 p.m.)

Friday: Markets holiday