THE RUPEE: soft trend


The rupee showed slight weakness in terms of the dollar in the local currency market during the week, ended on February 28, 2015. In the interbank market, the rupee drifted lower by 10 paisa in terms of the dollar for buying and selling at Rs 101.83 and Rs 101.86. In the open market, the rupee resisted fall versus the dollar, holding the level at Rs 101.80 and Rs 102.00. The national currency lost Rs 1.25 in relation to the euro for buying and selling at Rs 113.75 and Rs 114.00.

According to the market sources, it was surprising to note that dollar demand increased despite a surge in the foreign exchange reserves.

Some other analysts, however, attributed it to higher import bills. Imports are rising with the passage of time, but on the other hand, exports were not picking up owing to several factors, they said. The exporters were demanding rise in dollar’s rates so that they could be able to get better return. For the last several years, they (exporters) were facing hardship as a result of huge losses due to fall in textile production. They said that due to high cost of production, in the absence of basic needs, such as loadshedding of gas, electricity and unavailability of irrigation water, they were losing their courage and money, as well. Recently, Prime Minister Nawaz Sharif, urged the exporters to double the efforts to achieve target of 50 billion dollars within three years.

In the meantime, Chairman of Forex Association of Pakistan (FAP) Malik Bostan said that dollar’s rise will prove short-lived in time to come.

INTER-BANK MARKET RATES: On Monday, the rupee inched up by one paisa against the dollar, for buying at Rs 101.74 and it also gained four paisa for selling at Rs 101.76.

On Tuesday, the rupee surrendered gains against the dollar, losing 10 paisa for buying and selling at Rs 101.85 and Rs 101.86. On Wednesday, the rupee shed one paisa versus the dollar for buying at Rs 101.86 and it also lost two paisa for selling at Rs 101.88. On Thursday, the rupee slipped with a slide of two paisa against the dollar for buying and selling at Rs 101.88 and Rs 101.90.

On Friday, the rupee posted five-paisa surge against the dollar for buying and selling at Rs 101.83 and Rs 101.85.

OPEN MARKET RATES: On February 23, the rupee drifted lower in terms of the dollar, losing 10 paisa for buying and selling at Rs 101.80 and Rs 102.00.

The rupee, however, recovered its weekend losses versus the euro, rising 50 paisa for buying and selling at Rs 115.00 and Rs 115.25.

On February 24, the rupee sustained overnight gains in terms of the dollar for buying and selling at Rs 101.80 and Rs 102.00, respectively, they said. The rupee also showed no change versus the euro, for buying and selling at Rs 115.00 and Rs 115.25, they said.

On February 25, the rupee depreciated by 10 paisa in relation to the dollar for buying and selling at Rs 101.90 and Rs 102.10. The local currency also lost 50 paisa in terms of the euro for buying and selling at Rs 115.50 and Rs 115.75.

On February 26, the rupee also shed five paisa in terms of the dollar for buying and selling at Rs 101.95 and Rs 102.15. The rupee maintained its overnight levels versus the euro, for buying and selling at Rs 115.50 and Rs 115.75.

On February 27, the rupee also picked up the same amount in terms of the dollar for buying and selling at Rs 101.90 and Rs 102.10, respectively. The rupee also posted fresh gain of Rs 1.25 versus the euro, for buying and selling at Rs 114.25 and Rs 114.50.

On February 28, the rupee maintained slight recovery against the dollar by gaining 10 paisa for buying and selling at Rs 101.80 and Rs 102.00. The rupee also picked up 50 paisa versus the euro, for buying and selling at Rs 113.75 and Rs 114.00.

OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the euro steadied as caution over Greece’s future persisted despite a conditional loan extension reached late last week.

Euro zone ministers late on Friday agreed to extend Greece’s financial rescue package by four months after weeks of difficult and often confusing negotiations that held financial markets captive.

The dollar was available against the Indian rupee at Rs 62.21, the US currency was at 3.6405 in terms of the Malaysian ringgit and the greenback was available at 6.2551 in terms of the Chinese yuan.

Inter bank buy/sell rates for the taka against the dollar on Monday: 77.80-77.80 (previous 77.80-77.80). Call Money Rates: 07.00-09.00 percent (Previous 07.00-09.00 percent).

The US currency extended overnight gains versus the rupee on the money market on Tuesday in the process of trading, dealers said.

In the second Asian trade, the dollar edged higher against the yen, but traders were wary of making too many bets on the currency ahead of congressional testimony by Federal Reserve Chair Janet Yellen.

The dollar was trading against the Indian rupee at Rs 62.26, the greenback was at 3.6260 in terms of the Malaysian ringgit and the US currency was at 6.2551 against the Chinese yuan.

Inter bank buy/sell rates for the taka against the dollar on Tuesday: 77.80-77.80 (previous 77.80-77.80). Call Money Rates: 07.00-09.00 percent (Previous 07.00-09.00 percent).

In the third Asian trade, the dollar edged down against the yen after Federal Reserve Chair Janet Yellen suggested the Fed won’t be rushed into kicking off the US interest rate tightening cycle. In closely watched remarks before the US Senate Banking Committee on Tuesday, Yellen said the Fed is preparing to consider interest rate hikes “on a meeting-by-meeting basis.”

The dollar was trading against the Indian rupee at Rs 62.06, the US currency was at 3.6220 in terms of the Malaysian ringgit and the greenback was available at 6.259 versus the Chinese yuan.

Inter bank buy/sell rates for the taka against the dollar on Wednesday: 77.80-77.80 (previous 77.80-77.80). Call Money Rates: 07.00-08.75 percent (Previous 07.00-09.00 percent).

In the fourth Asian trade, the dollar nursed modest losses on Thursday, having eased for a second straight session after recent remarks from the head of the Federal Reserve prompted markets to push back the timing of an expected US interest rate hike.

The euro edged up to $1.1364, up from this week’s trough of $1.1288, but remained stuck in a $1.12-$1.15 range held since hitting an 11-year trough of $1.1098 a month ago. Against the yen, the greenback slipped to 118.925 yen, off this week’s high of 119.84. Yet, it too has been struggling for direction since peaking at a 7-1/2-year high of 121.86 yen in early December.

The dollar was trading against the Indian rupee at Rs 61.97, the US currency was available at 3.5970 versus the Malaysian ringgit and the greenback was at 6.2596 in terms of the Chinese yuan.

Inter bank buy/sell rates for the taka against the dollar on Thursday: 77.80-77.80 (previous 77.80-77.80). Call Money Rates: 06.75-8.75 percent (Previous 06.75-08.75 percent).

In the final Asian trade, the dollar took a breather after surging to a one-month high against a basket of currencies the previous day as US economic data and comments from Federal Reserve officials prompted investors to raise their bets on a rate increase.

The dollar index eased 0.2 percent to 95.130, inching away from a one-month high of 95.357 set on Thursday. The dollar index had rallied 1.1 percent on Thursday, bringing it close to the more than 11-year high of 95.481 hit on January 23. The euro edged up 0.1 percent to $1.1213, but remained not far from a one-month low of $1.1184 touched on Thursday.

The dollar was trading against the Indian rupee at Rs 61.80, the greenback was at 3.6110 in terms of the Malaysian ringgit and the US currency was available at 6.2695 in relation to the Chinese yuan.

At the weekend, the dollar index ended little changed on Friday as it stayed on track for a record eighth months of gains on improving US data and comments from Federal Reserve officials that bolstered bets for a interest rate rise later this year.

This measure of the greenback against the euro, yen and four other currencies was set to mark its longest streak of monthly gains since the greenback was floated as a fiat currency in 1971. February’s gain of about 0.52 percent, however, was the smallest of the eight months. The dollar overcame earlier month-end selling that followed a rally on Thursday, as more evidence suggested the US economy will expand in the coming months.

Recorder Report

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