THE RUPEE: two-way movement


A divergent trend was seen on the money market as the rupee performed both sides against the dollar during the week, ended on May 3, 2014. In the interbank market, the rupee lost 56 paisa versus the dollar for buying at Rs 98.72 and fell by 57 paisa for selling at Rs 98.75.

In the open market, the rupee, however, rose by Rs 20 paisa against the dollar for buying at Rs 99.65 and it also picked up 10 paisa for selling at Rs 99.75, respectively.

While, the domestic currency remained stable in terms of the euro for buying and selling at Rs 137.25 and Rs 137.50.

Commenting on the stable trend in the money market, analysts said that supply of dollars improved and it is most likely that present trend may continue through the coming times. The World Bank approved one billion dollars, which expectedly helped in stabilising the foreign exchange reserves.

They said this factor will definitely improve supply position of dollars. Another 11 billion dollars package is also likely in five years, so, it is an apparent outlook that these positive factors would help in narrowing the gap between demand and supply, they said.

INTER-BANK MARKET RATES: On Monday, the rupee continued its weakness in relation to the dollar, losing 16 paisa for buying at Rs 98.16 and it also shed 18 paisa for selling at Rs 98.18. On Tuesday, slight rise in the dollars’ demand, forced the rupee to offset some of it’s appreciation, losing 24 paisa for buying at 98.40 and it also lost 26 paisa for selling at Rs 98.44.

On Wednesday, the rupee failed to come out of weakness against the dollar, losing 15 paisa more for buying at Rs 98.55 and shed 16 paisa for selling at Rs 98.60. On Thursday, money market was closed due to Labour Day holiday. On Friday, the rupee dropped by 17 paisa in relation to the dollar for buying at Rs 98.72 and it also shed 15 paisa for selling at Rs 98.75.

OPEN MARKET RATES: On April 28, the rupee, however, gained 15 paisa in terms of the dollar for buying and selling at Rs 99.45 and Rs 99.65 respectively. The rupee showed no variation versus the euro for buying and selling at Rs 137.25 and Rs 137.50 respectively.

On April 29, the rupee was unmoved in terms of the dollar for buying and selling at Rs 99.45 and Rs 99.65 respectively, the rupee travelled the same path, depicting no visible change versus the euro for buying and selling at Rs 137.25 and Rs 137.50, they said.

On April 30, the rupee drifted lower by 15 paisa for buying and selling at Rs 99.60 and Rs 99.80. The rupee showed no variation in terms of the euro for buying and selling at Rs 137.25 and Rs 137.50.

On May 1, market was closed for a holiday. On May 2, the rupee extended its losses versus the dollar, shedding 15 paisa for buying at Rs 99.75 and the national currency also slipped by five paisa for selling at Rs 99.85. The rupee also was depreciated by 35 paisa in terms of the euro for buying at Rs 137.60 and it fell by 25 paisa for selling at Rs 137.75.

On May 3, the rupee recovered 10 paisa in relation to the dollar, for buying and selling at Rs 99.65 and Rs 99.75. The rupee also picked up 35 paisa in terms of euro for buying and selling at Rs 137.25 and Rs 137.50.

OVERSEAS OUTLOOK FOR DOLLARS: In the first Asian trade, the dollar got off to a quiet start following a few days of directionless trading with investors unlikely to take aggressive positions ahead of major events in the United States and the euro zone. The dollar was trading against the Indian rupee at Rs 60.52, the greenback at 3.2700 in relation to the greenback and the US currency was at 6.2475 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Monday. 77.65-77.65 (77.65-77.65). Call Money Rates: 06.00-07.75 percent (previous 06.00-08.00 percent).

In the second Asian trade, the South Korean won hit a fresh six-year high leading gains among emerging Asian currencies, though many investors remained cautious ahead of major events this week including a US Federal Reserve policy meeting.

The dollar was trading against the Indian rupee at Rs 60.49, the greenback was at 3.2610 in terms of Malaysian ringgit and the US currency was available at 6.2577 versus the Chinese yuan.

Inter bank buy/sell rates for the taka against the dollar on Tuesday. 77.65-77.65 (77.65-77.65). Call Money Rates: 05.90-07.50 percent (previous 05.00-07.50 percent).

In the third Asian trade, the yen clung to its gains against the dollar on Wednesday after the Bank of Japan held off from fresh stimulus as expected, with some traders saying month-end flows may have contributed to the yen’s firm tone. The dollar was down 0.2 percent at 102.42 yen, having shown little reaction after the BOJ voted unanimously to maintain its pledge of increasing base money, its key policy gauge, at an annual pace of 60 trillion to 70 trillion yen ($587-685 billion).

The greenback was trading against the Indian rupee at Rs 60.36, the dollar was available at 3.2650 versus the Malaysian ringgit and the US currency was at 6.266 in relation to the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Wednesday. 77.65-77.66 (77.65-77.65). Call Money Rates: 05.50-07.50 percent (previous 05.90-07.50 percent).

In the fourth Asian trade, dollar crawled slightly higher against a basket of major currencies on Thursday but stayed close to a three-week low hit in the previous session, when data showed the US economy all but stalled in the first quarter. With much of Asia shut for public holidays, and ahead of the key US jobs report on Friday, major currencies mostly stuck to their recent ranges.

In the final Asian trade, the dollar hovered above a three-week low against a basket of major currencies on Friday, as investors stayed on the sidelines ahead of a closely-watched US jobs report and appeared unmoved by clashes between Ukrainian forces and pro-Russian separatists. The dollar index held steady at 79.543, having fallen to 79.414 on Thursday, its lowest since April 11. Investors had sold the greenback after data on Wednesday showed the US economy stalled in the first quarter.

The dollar was trading against the Indian rupee at Rs 60.21, the greenback was at 3.2655 in terms of the Malaysian ringgit and the US currency was available at 6.259 in relation to the Chinese yuan.

At the week-end, currency traders briefly boosted the dollar on news of surprisingly strong hiring that took the US unemployment rate in April to a 5-1/2-year low before surrendering the gains on data signalling many Americans were exiting the labour force.

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