THE RUPEE: all-round gains

The rupee managed to post recoveries against both dollar and euro during the week ended on October 1, 2011. In the interbank dealings, the rupee inched up by 16 paisa versus dollar for buying and selling at 87.44 and 87.49.
On the open market, the rupee recovered Rs 1.10 in terms of dollar for buying and selling at 88.30 and 88.70. It also posted fresh gain of Rs 1.82 versus euro for buying and selling at Rs 118.91 and Rs 119.41.
The feature of the week was expected cut in the discount rate as a result of downward trend in the inflation rate. Besides, the government reduced the rates of the National Saving Schemes (NSS), which may propel the investors to buying dollars. In addition, the International Monetary Fund (IMF) said that many countries of the world are piling up currencies in an environment of low interest rates and high uncertainties.
The country's foreign exchange reserves fell to 17.38 billion dollars in the week ending on September 24, from 17.64 billion dollars of the previous week.
OPEN MARKET RATES: On Monday, the rupee lost 70 paisa against dollar for buying and selling at 89.90 and 90.10. However, it gained four paisa versus euro for buying and selling at Rs 120.69 and Rs 121.19.
On Tuesday, the rupee gained 80 paisa in relation to dollar for buying and selling at 89.10 and 87.30. The rupee also picked up 13 paisa versus euro for buying and selling at Rs 120.56 and Rs 121.06.
On Wednesday, the rupee gained Re one in relation to dollar for buying and selling at 88.10 and 88.30. The rupee, however, shed 10 paisa versus euro for buying and selling at Rs 120.66 and Rs 121.16.
On Thursday, the rupee slipped by 10 paisa in relation to dollar for buying and selling at 88.20 and 88.40. The rupee, however, gained 22 paisa versus euro for buying and selling at Rs 120.44 and Rs 120.94.
On Friday, the rupee did not show any change in relation to dollar for buying at 88.20 while it shed 30 paisa selling at 88.70. The rupee, however, shed eight paisa versus euro for buying and selling at Rs 120.52 and Rs 121.02.
On Saturday, the rupee dropped 10 paisa in relation to dollar for buying at 88.30 while it retained its last level at 88.70. The rupee, however, gained Rs 1.61 versus euro for buying and selling at Rs 118.91 and Rs 119.41.
INTER-BANK MARKET: On September 26, the rupee was unchanged in relation to dollar for buying at 87.60 while it gained one paisa for selling at 87.64.
On September 27, the rupee rose by 20 paisa in relation to dollar for buying at 87.40 and 19 paisa for selling at 87.45.
On September 28, the rupee shed one paisa against dollar for buying at 87.41 while it gained three paisa for selling at 87.42.
On September 29, the rupee retained its level against dollar for buying at 87.41 while it shed four paisa for selling at 87.46.
On September 30, the rupee was down by four paisa against dollar for buying and selling at 87.45 and 87.50.
On October 1, the rupee inched up one paisa against dollar for buying and selling 87.44 at 87.49.
WORLD VALUE OF DOLLAR: In the first Asian trading, euro dropped sharply, moving towards an eight-month low hit previous week, as riskier assets were hammered across the board with markets waiting for more details on fresh efforts from European officials to tackle the debt crisis there.
The euro started cautiously higher, bobbing up to $1.3585 amid reports that the EU leaders were considering beefing up the European Financial Stability Fund and new measures to ring-fence debt-ridden Greece, Portugal and Ireland.
The dollar versus Indian rupee was available at Rs 49.43, in relation to Malaysian ringgit at 3.1860 and at 6.3845 in terms of Chinese yuan.
In the second Asian trade, euro crawled up from eight-month lows as a report that Europe is considering beefing up its bailout fund prompted short-covering.
Asian currencies also rebounded after massive selling in the past two weeks, helping to ease worries about growing contagion from the euro zone's debt crisis to the world economy and supporting the euro and other risk currencies.
Against Indian rupee, dollar was at Rs 49.45, versus Malaysian ringgit at 3.1500, and at 6.394 in term of Chinese yuan.
Inter bank buy/sell rates for taka against dollar were 75.18-75.20 (previous 75.14-75.17) and Call Money Rates: 6.00-8.00 percent (previous 6.00-8.00 percent).
In the third Asian trade, yen rose, buoyed by Japanese fund repatriation and buying by Japanese exporters, while euro dipped as investors waited to see whether European policymakers would push ahead with reforms to the euro zone's rescue fund.
Yen buying flows ahead of the quarter-end and the end of Japan's financial half-year gave a lift to the Japanese currency and weighed on the euro and the dollar.
Traders said Japanese exporters were spotted selling both dollar and euro against yen. Traders also cited euro selling by Japanese investors repatriating proceeds gained from coupon payments on their foreign bond holdings.
Inter bank buy/sell rates for taka against dollar were 75.22-75.24 (previous 75.14-75.17) and Call Money Rates 6.50-8.50 percent (previous 6.00-8.25 percent). China's yuan ended up slightly after the central bank fixed the mid-point at a record high level in the run-up to a US Senate debate on a currency bill next week. It closed at 6.3938 versus dollar, stronger than Tuesday's 6.3992, but far below Wednesday's mid-point of 6.3623, highest since Beijing revalued its currency in 2005.
In the fourth Asian trade, euro gained on short-covering in volatile, commodity-driven trade after riskier assets bounced off intra-day lows, but was still on track to mark its worst quarter since early 2010, with traders preparing for further falls.
The euro bobbed up 0.6 percent to a session peak of $1.3638, as stocks and commodities were scooped up on dips after an overnight sell-off, with the rally getting stuck in a layer of offers at $1.3620-40. Stop losses loom at $1.3650.
The euro lost nearly 7 percent against dollar during the quarter, hammered by nagging worries over the prospect of Greek default and constant bickering by European policy-makers over the response to the crisis.
Inter bank buy/sell rates for taka against dollar were 75.28-75.30 (previous 75.22-75.24), and Call Money Rates: 6.00-8.00 percent (previous 6.50-8.50 percent). The dollar versus Indian rupee was available at Rs 48.91, versus Malaysian ringgit at 3.1880 and in terms of Chinese yuan at 6.3979.
In the final Asian session, euro was on track on Friday for its worst monthly slide in nearly a year, slipping back towards an eight-month low against dollar as equities took a hit, while selling by Japanese exporters pushed it closer to a 10-year low versus yen.
The euro relinquished modest gains made after Germany approved an expansion of euro-zone bailout fund, pressured by a wall of orders from Japanese exporters wrapping up deals for the end of their financial first half. It lost 0.8 percent to 103.66 yen, taking out some light stop losses below the late New York low of 103.90 yen, and shed 0.3 percent versus the dollar to $1.3549, with some traders detecting macro funds among the sellers. The yuan closed near its lowest daily trading limit versus dollar from the central bank's mid-point on Friday after trading mostly at the limit during the session.
At the week-end, euro was on track to close out its worst quarter against dollar since June 2010, and the growing concern about the euro zone's ability to resolve its debt problems was expected to keep it under pressure in the week ahead. As of late Friday afternoon, the euro for the quarter was down 7.5 percent against the dollar, last trading at $1.34176.