THE RUPEE: mixed patterns


The rupee moved both ways against the dollar on the money market during the week, ended on August 29, 2015. In the interbank market, the rupee slipped by 10 in terms of the dollar for buying and selling at Rs 104.00 and Rs 104.02.

In the open market, the rupee, however, gained the same amount versus the dollar for buying and selling at Rs 104.00 and Rs 104.02. The rupee also picked up over Rs 2.00 against the euro for buying and selling at Rs 116.20 and Rs 117.20.

Some experts said that the rupee managed to halt fresh decline versus the dollar. Under the directive of the State Bank, the rupee managed to halt decline in relation to the dollar.

Recently, the central bank asked the commercial banks to ward off forward buying of dollar, which boosted the rupee in terms of the greenback.

It was observed that recent fall in the value of the rupee was reflection of impact of the decline in the regional currencies and partly because of demand by textile exporters.

It was observed that to boost exports, the textile sector, most of the exporters were demanding for local currency’s devaluation. In fact, a decline of 12 percent of exports in July also forced the govt to check it and take necessary measures.

After China’s devaluation, most of the regional countries adopted the same path, particularly after Indian rupee’s slide from Rs 62 to Rs 66.00, which created a concern for the economic managers, they observed.

Some currency viewers observed, the rupee faced devaluation in it’s value versus the dollar as a result of demand by the country’s exporters. In the meantime, country’s foreign exchange reserves fell to 18.508 billion dollars.

INTERBANK MARKET RATES: On Monday, the rupee lost Rs 1.80 in relation to the dollar for buying and selling at Rs 103.90 and Rs 103.95. On Tuesday, the rupee slid by 35 paisas in terms of the dollar for buying and selling at Rs 104.28 and Rs 104.30. On Wednesday, the rupee gained 10 paisas against the dollar for buying and selling at Rs 104.15 and Rs 104.20. On Thursday, the rupee extended overnight gains, picking up 15 paisas against the dollar for buying and selling at Rs 104.00 and Rs 104.05.

On Friday, the rupee almost sustained its overnight levels against the dollar for buying and selling at Rs 104.00 and Rs 104.02.

OPEN MARKET RATES: On August 24, the rupee followed same pattern, losing around Re.one versus the dollar for buying and selling at Rs 104.60 and Rs 104.90.

The rupee also depreciated by Rs 1.40 versus the euro for buying and selling at Rs 118.60 and Rs 119.10. On August 25, the rupee held the overnight levels versus the dollar for buying and selling at Rs 104.60 and Rs 104.90. The rupee also depreciated in relation to the euro for buying and selling at Rs 119.00 and Rs 120.00. On August 26, the rupee almost held the overnight levels versus the dollar for buying and selling at Rs 104.60 and Rs 104.80. The rupee adopted the same path in relation to the euro, sustaining last levels for buying and selling at Rs 119.00 and Rs 120.00.

On August 27, the rupee moved with sight gains versus the dollar for buying and selling at Rs 104.50 and Rs 104.75. The rupee also appreciated in relation to the euro, picking up Rs 1.75 for buying and selling at Rs 117.25 and Rs 118.25. On August 28, the rupee did not move any change versus the dollar for buying and selling at Rs 104.50 and Rs 104.75. The rupee picked up 25 paisas in relation to the dollar for buying and selling at Rs 117.00 and Rs 118.00.

On August 29, the rupee sustained against the dollar for buying Rs 104.50, it picked up five paisas for selling at Rs 104.70. The rupee also gained 80 paisas in relation to the dollar for buying and selling at Rs 116.20 and Rs 117.20.

OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the euro hit a 6 1/2-month high and the yen hit a 1 1/2-month high against the dollar on Monday as investors dumped risk assets and flocked to currencies often seen as safe havens.

The euro and the yen rose also as investors unwound their short positions. “Markets are panicking. Things are starting look like the Asian financial crisis in the late 1990s. Speculators are selling assets that seem the most vulnerable,” said Takako Masai, the head of research at Shinsei Bank in Tokyo. Worries about a slowing Chinese economy, and in turn global growth, flared up last Friday after a survey showed a further deterioration in China’s manufacturing activity.

This was compounded by a steep drop in the Chinese share market, which fell more than 7 percent on Monday. The euro jumped to as high as $1.1496, its highest level since February. It last stood at $1.1480, up 0.9 percent on the day. The dollar slid as far as 120.73 yen, down more than a full yen from 121.96 late in New York on Friday, reaching a low last seen on July 9.

The dollar was trading against the Indian rupee at Rs 66.50,, the greenback was at 4.2240 versus the Malaysian ringgit and the US currency was at 6.3968 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: 05.30-6.50 percent (Previous 05.30-06.50 percent).

In the second Asian trade, the dollar rose more than 1 percent against the yen on Tuesday and pulled away from seven-month lows as investor risk aversion showed signs of easing, but the outlook remained clouded by worries about slowing Chinese growth.

Traders said a rise in US stock index futures and a bounce in Tokyo equities from session lows helped spur dollar-buying against the yen. There was also talk of dollar-buying by Japanese players.

The dollar was trading against the Indian rupee at Rs 66.56, the greenback was at 4.2420 in terms of the Malaysian ringgit and the US currency was at 6.413 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 dollar edged up against the euro and yen on Wednesday, as China’s policy easing steps halted a slide in the region’s equity markets and prevented a further worsening in risk sentiment for now.

The US currency was up 0.8 percent at 119.77 yen, albeit off the high of 120.40 scaled overnight. It managed to pull away from a seven-month low of 116.15, after China’s central bank cut interest rates for the second time in two months late on Tuesday.

The dollar was trading against the Indian rupee at Rs 66.20, the greenback was at 4.2400 in terms of the Malaysian ringgit and the US currency was at 6.4136 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: 05.30-6.50 percent (Previous 05.30-06.50 percent).

In the forth Asian trade, the yen nursed losses against the dollar on Thursday as gains in Chinese equities helped underpin risk sentiment for now and dampened demand for the safe haven Japanese currency.

Comments from an influential Federal Reserve official on Wednesday downplaying prospects of a September interest rate hike helped improve market sentiment. In the currency market, investors reacted by unwinding recent moves that lifted both the yen and the euro.

The dollar was trading against the dollar at Rs 66.09, the greenback was at 4.2520 in terms of the Malaysian ringgit and the US currency was at 6.407 against 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 05.30-06.50 percent).

In the final Asian trade, the dollar held near one-week highs against a basket of major currencies early on Friday, having benefited from upbeat US data and as investors continued to cut back on safe-havens such as the yen.

Commodity currencies including the Australian dollar managed to outperform their US peer after a solid rebound in Chinese equities helped lift risk appetite generally. The euro came close to $1.1200, having been knocked off its lofty perch above $1.1700 and last stood at $1.1258.

The dollar was trading against the Indian rupee at Rs 66.05, the greenback was at 4.2020 versus the Malaysian rinttit and the US currency was at 6.393 in terms of the Chinese yuan.

At the week-end, the dollar rose to one-week highs for a fourth straight session of gains after some Federal Reserve officials did not rule out an interest rate hike next month despite this week’s market meltdown.

Atlanta Federal Reserve President Dennis Lockhart, a voting member of the rate-setting Federal Open Market Committee, saw the odds of a rate hike in September as roughly even.

The euro, meanwhile, fell 0.6 percent to $1.1180, well off its Monday high above $1.1700 when the sell-off in global markets led investors to unwind euro-funded carry trades.

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