THE RUPEE: falling trend


-File photo

WEB DESK: The rupee drifted lower against the dollar on the money market during the week, ended on 29, 2015. In the open market, the rupee lost 50 paisas against the dollar for buying and selling at Rs 106.50 and Rs 106.70. The rupee showed no change versus the euro for buying and selling at Rs 113.10 and Rs 114.10.

In the interbank market, the rupee maintained present levels in relation to the dollar for buying and selling at Rs 105.50 and 105.51

The rupee maintained it’s current levels in terms of the dollar despite strong demand for dollars, experts said. They observed that the four-month Foreign Direct Investment (FDI) outflow is higher than inflows, which is not very good sign and the country’s foreign exchange reserves stood at 19.829 billion dollars, may help supply of dollars.

INTER-BANK MARKET RATES: On Monday, the rupee slipped by one paisa against the dollar for buying and selling at Rs 105.50 and 105.51. On Tuesday, the rupee was almost unchanged against the dollar for buying and selling at Rs 105.50 and 105.52.

On Wednesday, the rupee picked up two paisas in relation to the dollar for buying and selling at Rs 105.49 and 105.50. On Thursday, the rupee shed one paisa in relation to the dollar for buying and selling at Rs 105.50 and 105.51, they said.

On Friday, the rupee depicted no change in relation to the dollar for buying and selling at Rs 105.50 and 105.51.

OPEN MARKET RATES: On November 23, the rupee did not move any side against the dollar for buying and selling at Rs 106.00 and Rs 106.30. The rupee was trading against the euro for buying and selling at Rs 113.10 and Rs 114.10.

On November 24, the rupee was unchanged in terms of the dollar for buying and selling at Rs 106.00 and Rs 106.30. While, the rupee lost 20 paisas versus the euro for buying and selling at Rs 113.30 and Rs 114.30.

On November 25, the rupee was unchanged in terms of the dollar for buying and selling at Rs 106.00 and Rs 106.30, they said. While, the rupee recovered 40 paisas versus the euro for buying and selling at Rs 112.90 and Rs 113.90, they added.

On November 26, the rupee was did not move any side in terms of the dollar for buying and selling at Rs 106.00 and Rs 106.30. While, the rupee extended overnight gains, picking up 10 paisas versus the euro for buying and selling at Rs 112.80 and Rs 113.80. On November 27, the rupee, after travelling in a positive territory, stumbled with modest losses, falling 40 paisas for buying at Rs 106.40 and it also lost 30 paisas for selling at Rs 106.60, they said. While, the rupee held the overnight levels versus the euro for buying and selling at Rs 112.80 and Rs 113.80, they added.

On November 28, the rupee extended overnight weakness in terms of the dollar, losing 10 paisas for buying and selling at Rs 106.50 and Rs 106.70, they said. The rupee adopted same path versus the euro, shedding 30 paisas for buying and selling at Rs 113.10 and Rs 114.10, they added.

OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the euro extended its losses against the dollar on Monday, hitting a seven-month low versus the US currency, on expectations that the European Central Bank will ramp up its monetary stimulus next month. Most major banks have stuck firmly to the view that the euro will fall toward parity with the dollar in the months ahead as the Federal Reserve begins to lift interest rates while the ECB takes the opposite course.

The dollar was trading against the Indian rupee at Rs 66.32, the greenback was at 4.2900 in terms of the Malaysian ringgit and the US currency was available at 6.3894 in terms of the Chinese yuan.

Inter bank buy/sell rates for the taka against the dollar on Monday. 78.89-78.90 (previous 78.86-78.86).

In the second Asian trade, the dollar hovered near an 8-month peak against a basket of currencies on Tuesday, underpinned by expectations the US Federal Reserve is on course to raise interest rates in December.

The euro was little changed at $1.0639 after touching a 7-month trough of $1.0592. The common currency had surged to as high as $1.0736 last week when the dollar came under some pressure.

The dollar was trading against the Indian rupee at Rs 66.37, the greenback was at 4.2580 versus the Malaysian ringgit and the US currency was at 6.3898 in relation to the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Tuesday. 78.91-78.92 (previous 78.89-78.90).

In the third Asian trade, the dollar nursed broad losses as investors cut crowded long positions in the lead-up to the US Thanksgiving holidays, and amid heightened geopolitical tensions after Turkey downed a Russian warplane.

It was one of the most serious publicly acknowledged clashes between a Nato member country and Russia for half a century and prompted President Vladimir Putin to warm of “serious consequences”.

The euro rose as far as $1.0676, and last traded at $1.0667, up 0.2 percent from late US levels.

The dollar was trading against the Indian rupee at Rs 66.32, the greenback was at 4.2000 in terms of the Malaysian ringgit and the US currency was available at 6.3882 versus the Chinese yuan.

Inter bank buy/sell rates for the taka against the dollar on Wednesday. 78.93-78.93 (previous 78.91-78.92).

In the forth Asian trade, the dollar was back on a bullish footing, dusting off its latest setback helped by upbeat US data and monetary easing expectations that dragged down the euro.

The euro was shaky, having slid to its lowest in more than seven months after ECB officials told Reuters they were considering options such as whether to stagger charges on banks hoarding cash or to buy more debt, ahead of next week’s policy review.

The dollar was trading against the Indian rupee at Rs 66.48, the greenback was at 4.2150 in terms of the Malaysian ringgit, the US currency was at 6.3893 in terms of the Chinese yuan.

Inter bank buy/sell rates for the taka against the dollar on Thursday. 78.93-78.93 (previous 78.93-78.93).

In the final Asian trade, the dollar, euro and yen found themselves in s familiar territory, having shuffled sideways in thin trade with US markets shut for the Thanksgiving Day holiday. The euro managed to hold above $1.0600 and last stood at $1.0606. It remained within reach of a 7-1/2 month trough of $1.0565 set earlier in the week.

Against the yen, the common currency was flirting with 130.00, not far off a 7-month low of 129.77.

The prospect of more easing from the European Central Bank (ECB) at next week’s policy review has been keeping the euro under pressure.

The dollar was available against the Indian rupee at Rs 66.71, the greenback was trading at 4.2330 in terms of the Malaysian ringgit and the US currency was at 6.3941 versus the Chinese yuan.

At the week-end, the dollar rose across the board on Friday, hitting an eight-month high against a basket of currencies as speculation the Swiss National Bank would follow the European Central Bank in cutting deposit rates further pushed major competitors lower.

Expectations of growing interest rate differentials between the dollar and major European currencies have pushed the dollar index up to near its yearly peak of 100.390, the highest it has been since June 2003.

Source: Business Recorder