THE RUPEE: further recovery likely


Bulls dominated the money market as the rupee extended its ground on the back of easy supply of dollars, during the week, ended on April 12, 2014. In the interbank market, the rupee gained Rs 1.75 versus the dollar for buying and selling at Rs 96.55 and it also picked up Rs 1.65 for selling at Rs 96.60.

In the open market, the rupee picked up Rs 1.60 to Rs 98.20 and the national currency rose by Rs 1.55 to Rs 98.40. The rupee also appreciated by Rs 1.85 to Rs 135.50 and Rs 136.00.

Chairman of the Forex Association of Pakistan, Malik Bostan said that the rupee started recovering its lost ground since the corrective measures taken to make easy supply of dollars.

Now, if people refrained from forward buying of dollars, so that the rupee would be able to trade within the levels of 95-100 versus the dollar, he added.

Chairman of the Forex Association of Pakistan (FAP), Malik Bostan, said that nearly one-week ago the FAP has set up dollar counters across the country, now the fruitful results have started coming up as rates stabilised now-a-days.

This move by the FAP along with other corrective measures taken by the economic managers to make comfortable supply of dollars played a vital role stabilising the rates.

On the other hand, this factor discouraged black market and eased supply of dollar as some money exchanges companies and franchise, facing dearth of dollar, he added.

INTER-BANK MARKET RATES: On Monday, the rupee dropped five paisa versus the dollar for buying at Rs 98.20 and the national currency also shed eight paisa for selling at Rs 98.25. On Tuesday, the rupee gave up overnight weakness versus the dollar, recovering 10 paisa for buying at Rs 98.10 and it gained 13 paisa for selling at Rs 98.12. On Wednesday, the rupee extended it’s winning streak versus the dollar, gaining 32 paisa for buying and selling at Rs 97.78 and Rs 97.80.

On Thursday, the rupee posted fresh gain of 58 paisa in terms of dollar for buying at Rs 97.20 and the national currency appreciated by 50 paisa for selling at Rs 97.30.

On Friday, the rupee picked up more 65 paisa in terms of dollar for buying at Rs 96.55 and the national currency also appreciated by 70 paisa for selling at Rs 96.60.

OPEN MARKET RATES: On April 7, the rupee managed to hold its week-long price in relation to the dollar for buying and selling at Rs 99.80 at Rs 99.95. While, the rupee slid 20 paisa in relation to the euro for buying and selling at Rs 137.35 and Rs 137.65, respectively.

On April 8, the rupee held the overnight rates in relation to the dollar for buying and selling at Rs 99.80 at Rs 99.95. The rupee picked up 10 paisa against the euro for buying at Rs 137.25 and it rose by 15 paisa for selling at Rs 137.50.

On April 9, the rupee retained it’s overnight levels in relation to the dollar for buying and selling at Rs 99.80 at Rs 99.95. The rupee picked up 25 paisa against the euro for buying at Rs 137.00 and Rs 137.25.

On April 10, the rupee rose by 50 paisa against the dollar for buying at Rs 99.30 and it also gained 45 paisa for selling at Rs 99.50, they said. The rupee also picked up Re.one against the euro for buying at Rs 136.00 and it also rose by 75 paisa for selling at Rs 136.50.

On April 11, the rupee sustained overnight levels versus the dollar for buying and selling at Rs 99.30 and Rs 99.50, they said. The rupee also rose by Re.one against the euro for buying and selling at Rs 135.00 and Rs 135.50.

On April 12, the rupee recovered Rs 1.10 in relation to the dollar for buying and selling at 98.20 and Rs 98.40. The rupee, however, shed 50 paisa against the euro for buying and selling at Rs 135.50 and Rs 136.00.

OVERSEAS OUTLOOK FOR DOLALRS: In the first Asian trade, the yen rose against its major counterparts in relatively thin trading in Asia on Monday, with moves limited by caution as the Bank of Japan began its two-day policy meeting.

The greenback remained under pressure after Friday’s US nonfarm payrolls report fell short of high expectations, while the euro had problems of its own from speculation the European Central Bank could launch its own bond-buying stimulus.

The dollar was available against the Indian rupee at Rs 60.08, the greenback was at 3.2665 in terms of the Malaysian ringgit and the US currency was at 6.2123 in relation to the Chinese yuan.

Inter bank buy/sell rates for the taka against the dollar on Monday. 77.67-77.67 (77.67-77.67). Call Money Rates: 06.75-08.25 percent (previous 06.50-08.25 percent).

In the second Asian trade, the dollar slipped against the yen, struggling to gain traction after the Bank of Japan (BoJ) held off from additional easing as expected, with focus turning to a news conference by BOJ Governor Haruhiko Kuroda.

The dollar last fetched about 102.98 yen, down 0.1 percent on the day. The dollar had been weak against the yen even ahead of the BOJ policy decision.

The dollar was trading against the Indian rupee at Rs 60.11, the greenback was at 3.2610 in terms of the Malaysian ringgit and the US dollar was at 6.2068 in relation to the Chinese yuan.

Inter bank buy/sell rates for the taka against the dollar on Tuesday. 77.67-77.67 (77.67-77.67). Call Money Rates: 06.75-08.25 percent (previous 05.25-08.25 percent).

In the third Asian trade, the dollar retook a bit of the ground it lost in the previous session but still languished near a three-week low against a basket of major currencies, having broken decisively lower as the yen squeezed higher and the euro gained a tailwind.

Traders said the yen’s sharp ascent was sparked in part by comments from the Bank of Japan’s governor on Tuesday that dismissed any need for additional stimulus.

The dollar was trading against the Indian rupee at Rs 60.05, the greenback was at 3.2260 in terms of the Malaysian ringgit and the US currency was at 6.2005 in relation to the Chinese yuan.

Inter bank buy/sell rates for the taka against the dollar on Wednesday. 77.67-77.67 (77.67-77.67). Call Money Rates: 06.75-08.50 percent (previous 05.00-08.25 percent).

In the fourth Asian trade, the dollar hit a three-week low versus a basket of major currencies on Thursday after minutes from the Federal Reserve’s March meeting disappointed dollar bulls, while the Aussie dollar surged on data showing solid Australian jobs growth.

Minutes of the Fed’s March 19 meeting released on Wednesday showed Fed officials had worried the bank’s forecasts on interest rates might appear to investors as mapping out a more aggressive cycle of rate hikes.

The dollar was trading against the Indian rupee at Rs 60.27, the US currency was at 3.2325 in terms of the Malaysian ringgit and the greenback was available at 6.2059 in relation of the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Wednesday. 77.67-77.67 (77.67-77.67) Call Money Rates: 07.15-08.25 percent (previous 05.25-08.50 percent).

In the final Asian trade, the dollar is on track of its biggest weekly fall in nine-months early, having given up all of its recent gains as markets become increasingly convinced that any interest rate hike by the Federal Reserve is still a long way off.

Minutes from the Fed’s March meeting released mid-week appeared to have hit home the message that the US central bank is nowhere near tightening even as it has begun to unwind its bond-buying stimulus.

The dollar was available against the Indian rupee at Rs 60.25, the greenback was at 3.2375 in terms of the Malaysian ringgit and the US currency was at 6.2120 in relation to the Chinese yuan.

At the week-end, the safe-haven US dollar edged higher on Friday, garnering support from a sell-off in equities around the world, as investors fretted about overstretched valuations.

Global equities fell to two-week lows, triggered by selling on Wall Street on Thursday. Wall Street stocks continued their decline on Friday, spurring a broad risk-averse environment that led to sell-offs in higher-yielding and emerging market currencies.

Recorder Report

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