THE RUPEE: cautious tone


The rupee almost managed to sustain it’s levels versus the dollar on the local currency market during the shortened week due to Independence Day. In the interbank market, the rupee did not depict sharp change against the dollar for buying and selling at Rs 101.84 and Rs 101.85.

In the open market, the shed 10 paisas versus the dollar for buying and selling at Rs 103.00 and Rs 103.20. The rupee also fell by Rs 1.75 against the euro for buying and selling at Rs 114.10 and Rs 115.10.

Some analysts said that the rupee drifted slightly lower against the dollar owing to comfortable supply. The feature of the week was news that China devalued the yuan after a run of poor economic data, guiding the currency to its lowest point in almost three years.

According to reports, the yuan has fallen almost 4 percent in two days since the central bank announced the devaluation. Some leading experts were of the view that strong rupee is hurting exports, which dropped by 17 percent in July.

INTER-BANK MARKET RATES: On Monday, the rupee slid two paisas versus the dollar for buying and selling at Rs 101.83 and Rs 101.84. On Tuesday, rupee was trading versus the dollar of buying and selling at Rs 101.82 and Rs 101.83, they said. On Wednesday, the rupee did not show major change in relation to the dollar of buying and selling at Rs 101.81 and Rs 101.82. On Thursday, the rupee slid by three paisas in relation to the dollar of buying and selling at Rs 101.84 and Rs 101.85.

OPEN MARKET RATES: On August 10, the rupee shed 10 paisas in terms of the dollar for buying at Rs 102.90 while the rupee held the overnight level for selling at Rs 103.00. While, the local currency, lost 10 paisas relation the euro for buying and selling at Rs 112.35 and Rs 113.35, they said.

On August 11, the rupee did not show any change for buying at Rs 102.90 while the national currency shed 10 paisas for selling Rs 103.10. As a result of yuan’s weakness, the local currency, lost 85 paisas in relation to the euro for buying and selling at Rs 113.20 and Rs 114.20.

On August 12, the rupee sustained week-long rates versus the dollar for buying and selling at Rs 102.90 and Rs 103.10. The local currency, lost 95 paisas in relation to the euro for buying and selling at Rs 114.15 and Rs 115.15.

On August 13, the rupee did not budge any side versus the dollar for buying and selling at Rs 102.90 and Rs 103.10, respectively. The local currency gained 15 paisas in relation to the euro for buying and selling at Rs 114.00 and Rs 115.00.

On August 15, the rupee shed modestly in terms of the dollar for buying and selling at Rs 103.00 and Rs 103.20, respectively. The local currency slipped by 10 paisas in relation to the euro for buying and selling at Rs 114.10 and Rs 115.10.

OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the dollar stayed close to a nearly four-month high against a basket of currencies, after solid US jobs data backed expectations that the US Federal Reserve could raise interest rates as early as September.

“It looks as if we’re now really on the verge” of a US rate increase, said Sue Trinh, senior currency strategist at RBC Capital Markets in Hong Kong. But risk appetite in Asia remained in check after weekend data raised concerns about a slowing Chinese economy.

The dollar was trading against the Indian rupee at Rs 63.76, the greenback was at 3.9250 in terms of the Malaysian ringgit and the US currency was at 6.209 in relation to 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: 05.25-6.75 percent (Previous 05.25-06.75 percent.

In the second Asian trade, Chinese yuan sharply weakened to a three-year low on Tuesday after the country’s central bank surprisingly devalued it, dragging down the Australian dollar and adding a potential element of volatility to the region’s foreign exchange markets. In an attempt to make the country’s exports more competitive and prop up the economy after recent poor data, China’s central bank devalued the yuan by nearly 2 percent.

The dollar was trading against the Indian rupee at Rs 63.87, the greenback was at 3.9490 in terms of the Malaysian ringgit and the US currency was available at 6.299 in relation to 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: 05.30-6.50 percent (Previous 05.25-06.50 percent).

In the third Asian trade, the Australian dollar tumbled to its lowest level since 2009 after the Chinese central bank set the midpoint for its yuan at the weakest level since October 2012, firing another salvo in what some fear could be the start of a currency war.

The People’s Bank of China set the midpoint rate at 6.3306 per dollar prior to market open, weaker than the previous fix of 6.2298 and 75 points weaker than previous day’s market close of 6.3231.

The dollar was trading against the Indian rupee at Rs 64.77, the greenback was at 4.0160 versus the Malaysian ringgit and the US currency was at 6.4268 in terms of 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: 05.30-6.50 percent (Previous 05.25-06.50 percent).

In the forth Asian trade, the Australian dollar inched higher on Thursday as the yuan’s depreciation showed signs of slowing.

China’s yuan fell for a third day and eased about 0.3 percent to 6.4090 versus the dollar, but held above a four-year low of 6.4510 set on Wednesday, as the central bank said there was no basis for further depreciation given strong economic fundamentals.

The dollar was trading against the Indian rupee at Rs 64.89, the greenback was at 4.0050 versus the Malaysian ringgit and the US currency was at 6.4066 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: 05.30-6.50 percent (Previous 05.25-06.50 percent).

In the final Asian trade, the dollar ticked up slightly on Friday after China’s central bank appeared to have stopped guiding the yuan lower for now, easing concerns that a weaker Chinese currency could derail plans by the US Federal Reserve to raise interest rates.

The dollar traded at 124.50 yen, up slightly from late US levels and extending its recovery from this week’s low of 124.21 yen. For the week, it is up 0.2 percent.

At the week-end, the dollar edged higher on Friday against a basket of currencies on encouraging data on US producer prices and industrial output, while euro ended a good week on a weak note even as the Greek parliament approved a new bailout agreement.

Relative calm returned to foreign exchange market after China earlier this week sent ripples through global financial markets by devaluing the yuan.

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