THE RUPEE: two-way trend witnessed


Two-way trend was witnessed on the currency market as the rupee played both sides versus the dollar during the week, ended on January 10, 2015. In the interbank market, the rupee gained nine paisa against the dollar for buying and selling at Rs 100.74 and Rs 100.77. In the open market, the rupee depreciated by 20 paisa in relation to the dollar for buying and selling at Rs 101.00 and Rs 101.20,which remained unchanged versus the euro for buying and selling at Rs 119.50 and Rs 119.75.

The rupee managed to halt sharp losses due to comfortable supply of dollars. According to the State Bank of Pakistan (SBP) reports, country’s foreign exchange reserves surged to 15.212 billion dollars during the week, ended January 2 compared to 14.944 billion dollars the previous week.

INTER-BANK MARKET RATES: On Monday, the rupee shed six-paisa in terms of the dollar for buying and selling at Rs 100.83 and Rs 100.85. On Tuesday, the rupee was down by 11-paisa versus the dollar for buying at Rs 100.94 and it also shed 13-paisa for selling at Rs 100.98.

On Wednesday, the rupee showed an improvement of 14-paisa versus the dollar at Rs 100.80 and Rs 100.83. On Thursday, the rupee firmly held the overnight levels versus the dollar for buying and selling at Rs 100.80 and Rs 100.83. On Friday, the rupee picked up six-paisa in relation to the dollar for buying and selling at Rs 100.74 and Rs 100.77.

OPEN MARKET RATES: On January 5, the rupee fell by 10 paisa versus the dollar for buying and selling at Rs 100.80 and Rs 101.00 in the open market, they said. The rupee, however, went up sharply in relation to the euro, picking up Rs 1.25 for buying and selling at Rs 119.50 and Rs 119.75, they said.

On January 6, the rupee was unchanged in relation to the dollar for buying and selling at Rs 100.80 and Rs 101.00, they said. The rupee, however, gained 25-paisa in terms of the euro for buying and selling at Rs 119.75 and Rs 120.00, respectively, they said.

On January 7, the local currency also picked up 10-paisa against the dollar for buying and selling at Rs 100.70 and Rs 100.90. It adopted the same pattern in terms of the euro, rising 75-paisa at Rs 119.00 and Rs 119.25.

On January 8, the rupee depreciated by 10-paisa in relation to the dollar for buying at Rs 100.80, while it also lost 20-paisa for selling at Rs 101.10. The local currency, however, extended gains in terms of the euro for buying and selling at Rs 118.75 and Rs 119.00.

On January 9, the rupee, however, depreciated in terms of the dollar, losing 20-paisa for buying at Rs 101.00 and it also lost 20-paisa for selling at Rs 101.20. The rupee also fell by 25-paisa in relation to the euro for buying and selling at Rs 119.25 and Rs 119.50.

On January 10, the rupee was inert in terms of the dollar for buying and selling at Rs 101.00 and Rs 101.20, they said, which it lost 25-paisa in relation to the euro for buying and selling at Rs 119.50 and Rs 119.75.

OVERSEAS OUTLOOK FOR DOLALR: In the first Asian trade, the euro fell to a nine-year low against the dollar on Monday as bets mounted on a further decline for the currency, faced with the possibility of more monetary easing by the European Central Bank (ECB) and its diminishing status as a reserve currency.

The euro was already battered after ECB President Mario Draghi late last week underscored the divergence between European and US monetary policy, set to remain a key theme in 2015. The dollar was trading against the Indian rupee at Rs 63.37, the greenback was at 3.5400 in terms of the Malaysian ringgit and the US currency was at 6.2205 in relation to the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Monday. 77.95-77.95 (previous 77.95-77.95). Call Money Rates: 08.00-09.90 percent (Previous 07.00-09.90 percent).

In the second Asian trade, the dollar slipped against the safe haven yen on Tuesday as investor risk aversion mounted on the back of a sharp drop in equities.

The battered euro caught some relief as the dollar stumbled against the yen, helping the common currency pull back a bit from a nine-year trough.

The dollar was trading against the Indian rupee at Rs 63.36, the greenback was at 3.5520 in terms of the Malaysian ringgit and the US currency was available at 6.2140 versus the Chinese Yuan.

In the third Asian market trade, the euro slid to a nine-year low against the dollar as investors braced for inflation data that should give doves at the European Central Bank a clear mandate for bolder policy stimulus. The common currency sank as deep as $1.1842, its lowest since March 2006. Traders said some sell stops were triggered after the currency broke below Monday’s trough of $1.1861.

The dollar was trading against the Indian rupee at Rs 63.42, the greenback was at 3.5600 in terms of the Malaysian ringgit and the US currency was available at 6.2092 versus the Chinese Yuan.

In the fourth Asian trade, the euro wobbled near a nine-year low as investors wagered the European Central Bank (ECB) would have to take bolder stimulus steps to combat growing deflationary pressures in the zone. The euro fell as far as $1.1802 the previous day, putting the 2005 trough of $1.1640 in reach of speculative sellers. It has since edged back to $1.1826 in Asia.

The dollar was trading against the Indian rupee at Rs 63.01, the greenback was at 3.5670 in terms of the Malaysian ringgit and the US currency was available at 6.2185 versus the Chinese Yuan.

In the final Asian trade, the euro wallowed near a nine-year low on Friday on growing expectations the European Central Bank will embark on quantitative easing, while the dollar held firm before US jobs data that could cement the case for a rate hike by the Federal Reserve.

ECB President Mario Draghi said the bank’s Governing Council stands ready to take unconventional measures if needed to stem a prolonged period of low inflation.

The euro stood at $1.1792, having hit a nine-year low $1.1754 on Thursday as traders grew more convinced that the ECB might start buying euro zone sovereign debt as soon as this month.

The dollar was available at Rs 62.41 versus the Indian rupee, the greenback was at 3.5610 in terms of the Malaysian ringgit and the US currency was trading at 6.206 per Chinese yuan.

At the week-end, investors with sizeable gains from the dollar’s strong move upward in recent weeks sold the greenback to capture profits despite a solid US jobs report that bolstered the case for the Federal Reserve to raise US interest rates later this year. “It looks like some trimming of positions heading into the weekend, but the strong dollar is still intact,” said Camilla Sutton, chief currency strategist at Scotiabank in Toronto.

The combination of a strengthening US economy and the Fed positioning itself to raise interest rates at mid-year contrasted against deflationary pressures in the major economies such as the eurozone and Japan, Sutton said.

Recorder Report

loading...
loading...