THE RUPEE: gradual fall


Bears dominated the money market during the week, ended on April 28, 2014. In the interbank market, the rupee drifted lower by 25 paisa in relation to the dollar for buying and selling at Rs 98.00 and Rs 98.05. In the open market, the rupee, in sympathy with the interbank market, the rupee lost 35 paisa against the dollar for buying and selling at Rs 99.60 and 99.80, the local currency also shed 50 paisa versus the euro for buying and selling at Rs 137.25 and Rs 137.50.

The rupee traded in a narrow range against the dollar on the money market last week amid comfortable supply of US currency, viewers said. They said that the national currency may be able to stand with it’s counterpart (US dollar) as country’s foreign exchange rose to 11.75 billion dollars during the last week.

Besides, Asian Development Bank (ADB) has provided 400 million dollars and other friendly countries also assisting different sectors to improve the infrastructure, which will definitely ease the supply of dollars in times to come, they said.

INTER-BANK MARKET: On Monday, the rupee lost 45 in terms of the dollar for buying and selling at Rs 97.75 and 97.80. On Tuesday, the rupee drifted lower versus the dollar, losing 35 paisa for buying and selling at Rs 98.10 and Rs 98.15.

On Wednesday, the rupee inched up versus the dollar, gaining five paisa for buying and selling at Rs 98.05 and Rs 98.10. On Thursday, the rupee picked up five paisa in terms of the dollar for buying and selling at Rs 98.00 and Rs 98.05. On Friday, the rupee sustained its levels against the dollar for buying and selling at Rs 98.00 and Rs 98.05.

OPEN MARKET RATES: On April 21, the rupee gained 15 paisa versus the dollar for buying at Rs 99.25 and it also picked up 10 paisa for selling at Rs 99.50. The rupee followed same path against the euro, recovering 50 paisa for buying and selling at Rs 136.75 and Rs 137.00.

On April 22nd, the rupee shed 25 paisa versus the dollar for buying at Rs 99.50 and it also fell by 20 paisa for selling at Rs 99.70. The rupee, however, gained 10 paisa against the euro for buying at Rs 136.65 and it also shed five paisa for selling at Rs 136.95. The rupee followed same path against the euro, recovering 50 paisa for buying and selling at Rs 136.75 and Rs 137.00.

On April 23 rd, the rupee was unchanged against the dollar for buying at Rs 99.50 while the national currency was down by five paisa for selling at Rs 99.75. The rupee also shed 10 paisa against the euro for buying and selling at Rs 136.75 and Rs 137.00.

On April 24th , the rupee also gained the same amount against the dollar for buying and selling at Rs 99.45 and Rs 99.70. The rupee, however, also shed five paisa versus the euro for buying and selling at Rs 136.80 and Rs 137.05. On April 25th, the rupee fell by 15 paisa against the dollar for buying at Rs 99.60 and it lost 10 paisa for selling at Rs 99.80. The rupee also drifted lower versus the euro, losing 60 paisa for buying and selling at Rs 137.40 and Rs 137.65. On April 26th, the rupee firmly held the overnight levels against the dollar for buying and selling at Rs 99.60 and Rs 99.80. The rupee gained 15 paisa in terms of the euro for buying and selling at Rs 137.25 and Rs 137.50.

OVERSEAS OUTLOOK FOR DOLLARS: In the first Asian trade, the dollar edged higher versus the yen, though a tense situation in Ukraine was likely to keep traders on their toes, with some markets still closed for the Easter holiday. The dollar rose to its highest level in nearly two weeks against the yen after data showed Japan logged a record trade deficit in the fiscal year that ended in March.

It last stood at 102.61 yen, up 0.2 percent, after rising as high as 102.71 yen. The dollar was trading against the Indian rupee at Rs 60.36, the greenback was at 3.2465 in terms of Malaysian ringgit and the US dollar was available at 6.2253 against the Chinese yuan.

Inter bank buy/sell rates for the taka against the dollar on Monday. 77.65-77.66 (77.6550-77.6550). Call Money Rates: 07.00-08.25 percent (previous 06.75-08.25 percent).

In the second Asian trade, the dollar held at two-week highs against a basket of major currencies after a subdued session overnight, with many global financial centres shut for the Easter long-weekend holiday.

The dollar was trading against the Indian rupee at Rs 60.69, the greenback was at 3.2605 in terms of the Malaysian ringgit and the US was at 6.234 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Tuesday. 77.6525-77.6600 (77.65-77.66). Call Money Rates: 07.00-08.25 percent (previous 06.25-08.25 percent).

The rupee also shed 10 paisa against the euro for buying at Rs 136.75 and it dropped by five paisa for selling at Rs 137.00, they said.

In the third Asian trade, the world’s major currencies started trade on familiar ground after an uninspired session that kept the dollar, euro and yen locked in narrow ranges.

The euro last traded at $1.3806, having drifted up from a near two-week low of $1.3785. Against the yen, the common currency firmed a touch to 141.65, while the dollar was flat at 102.60.

Inter bank buy/sell rates for the taka against the dollar on Wednesday. 77.6500-77.6525 (77.6525-77.6600). Call Money Rates: 07.00-08.25 percent (previous 06.50-08.25 percent).

In the fourth Asian trade, the greenback was last at 102.48, having drifted either side of 102.50. The euro fetched 141.61 yen and appeared reluctant to stray too far from 141.70. Against the yen, both the dollar and euro have been confined in slim ranges this week.

The dollar was trading against the Indian rupee at Rs 61.07, the greenback was at 3.2630 versus the Malaysian ringgit and the US currency was available in terms of the Chinese yuan at 6.2430. Inter bank buy/sell rates for the taka against the dollar on Thursday. 77.65-77.65 (77.6500-77.6525). Call Money Rates: 07.00-08.25 percent (previous 05.75-08.25 percent).

In the final Asian trade, the dollar held steady near a one-week low versus the yen, struggling to gain traction as rising tension in Ukraine undermined optimism about US economic growth. The dollar was trading against the Indian rupee at Rs 61.12, the greenback was available at 3.2690 in terms of the Malaysian ringgit and the US currency was at 6.2546 versus the Chinese yuan.

At the week-end, investors moved to the safety of the yen and Swiss franc, unnerved by escalating tensions between the West and Russia over Ukraine, and also took advantage of higher yielding Pacific currencies.

Mixed US data in recent weeks has left investors without a clear trend, which is now being trumped by the geopolitical concerns in Europe, a combination that has made placing big bets on currency movements high risk endeavours.

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