Easy trend

Marginal decline in the rupee value versus dollar and euro was seen on the money market during the week, ended on Saturday March 24, 2012. In the interbank dealings, the rupee fell slightly by eight paisa in relation to dollar for buying and selling at 90.78 and 90.80.
On the open market the rupee shed five paisa versus dollar for buying and selling at 91.05 and 91.15, the rupee also dropped by 76 paisa in terms of euro for buying at Rs 120.16 and shed 26 paisa for selling at Rs 120.66.
Some analysts said that the rupee may fluctuate slightly versus dollar in the absence of major payments for oil. The positive development is some improvements in the exporters' cotton buying, which is giving rise to expectations that the foreign exchange earnings may pick up in the coming days. Pak textiles exporters were hoping that the fall of the rupee would help in increasing the exports earnings this year, though as a result of rise in costs of imported materials undermines margins, in fact a weak currency helps exporters to compete in the international markets. Some years ago, traditionally, exporters called for a weaker currency to help them compete with other low-cost Asian producers.
But now after the world recession, all exporting countries are facing same situation and Pakistan is also among them.
INTER-BANK MARKET RATES: On Monday the rupee rose by five paisa in terms of dollar for buying at 90.70 and picked up four paisa for selling at 90.72. On Tuesday the rupee drifted lower against dollar, shedding four paisa for buying and selling at 90.74 and 90.76. On Wednesday the rupee continued its decline in relation to dollar, shedding three paisa for buying and selling at 90.77 and 90.79. On Thursday the rupee inched down versus dollar, losing one paisa for buying and selling at 90.78 and 90.80. On Friday all the commercial centres were closed due to Pakistan Day holiday.
OPEN MARKET RATES: On March 19 the rupee maintained its overnight levels in relation to dollar for buying and selling at 91.00 and 91.20. The rupee dropped by 70 paisa in terms of euro for buying and selling at Rs 119.40 and 120.40.
On March 20 the rupee, however, gained 10 paisa against dollar for buying and selling at 90.90 and 91.10. The rupee also picked up 10 paisa in terms of euro for buying and selling at Rs 119.30 and 120.30.
On March 21 the rupee maintained its overnight levels against dollar for buying and selling at 90.90 and 91.10. The rupee also retained its last levels in terms of euro for buying and selling at Rs 119.30 and 120.30.
On March 22 the rupee followed same trend against dollar as it shed 15 paisa for buying 91.05 and dropped by five paisa for selling at 91.15. The rupee, however, gained 30 paisa in terms of euro for buying and selling at Rs 119.00 and 120.00. On March 23 money markets were closed. On March 24, the rupee did not show any change against the dollar for buying and selling 91.05 and 91.15. The rupee, however, lost steeply versus euro for buying by Rs 1.16 to Rs 120.16 and shed 66 paisa for selling at Rs 120.66.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian session yen stayed on the defensive with the euro reaching a fresh five-month high against the Japanese currency, while the dollar nursed losses following a setback late last week. The euro rose as high as 110.15 yen at one point on trading platform EBS, its highest level since late October.
The yuan was little changed versus dollar after the People's Bank of China set the midpoint more than 100 pips stronger, mirroring a recent drop in the dollar index in global markets. Spot yuan closed at 6.3233 against the dollar, little changed form Friday's close of 6.3227. Before trading began, the PBOC set yuan's midpoint at 6.3082, 118 pips stronger than 6.3200 previously.
Inter bank buy/sell rates for taka against dollar: 81.76-81.80 (previous 81.76-81.80) Call Money Rates: 11.00-12.00 percent (previous 07.00-12.50 percent).
In the second Asian trade dollar hovered near a one-week low against a basket of currencies, but recent signs of improvement in the US economy and rising Treasury yields were likely to lend it some support.
The Indian rupee fell for a second consecutive session on Tuesday as outlook on foreign capital flows into local stocks and debt turned cloudy after hopes of interest rates cuts faded.
The rupee ended at 50.39/40 to the dollar, down from Monday's close of 50.23/24, after moving in a 50.1850 to 50.4250 range during the session. Inter bank buy/sell rates for taka against dollar: 81.74-81.80 (previous 81.76-81.80). Call Money Rates: 11.00-12.00 percent (previous 07.00-12.50 percent).
The yuan ended little changed versus dollar, as strong demand for the US currency from large companies offset a stronger midpoint set by the People's Bank of China in its daily fixing. Spot yuan ended at 6.3241 against the dollar, almost flat from Monday's close of 6.3233. Before trading began on Monday, the PBOC set the yuan's midpoint at 6.3029, up slightly from 6.3082 previously.
In the third Asian trade euro edged higher against dollar on short-covering, while yen was mostly weaker with traders eager to add to bearish bets against the Japanese currency.
The yen dipped to a fresh five-month low versus euro and hit a nine-month trough against sterling, staying on the defensive in the wake of the Bank of Japan's monetary easing last month. The euro rose 0.4 percent to $1.3273, after climbing to $1.32835 at one point, its highest level since March 8.
The Indian rupee fell to its weakest level in two weeks on Wednesday, despite upbeat sentiment in local stocks and suspected dollar sales by the central bank to shore up the domestic currency. The rupee ended at 50.66/67 to dollar, close to its low of 50.68, a level last seen on March 7, and weaker than Tuesday's close of 50.39/40.
Inter bank buy/sell rates for taka against dollar on Wednesday. 81.78-81.80 (previous 81.74-81.80) Call Money Rates: 11.00-12.00 percent (previous 07.00-12.50 percent). The dollar was trading versus the Malaysian ringgit at 3.0760 and it was available at 6.3258 against the Chinese yuan.
In the fourth Asian trading the Australian dollar dropped to a two-month low on Thursday after data showed China's manufacturing activity shrank in March for a fifth straight month, underscoring concerns about growth slowing in the world's second largest economy.
After HSBC flash PMI showed the overall rate of contraction deepening and new orders sinking to a four-month low, the Aussie fell 0.7 percent to $1.0383, though it later recovered somewhat above key support levels to last fetch $1.0414.
The dollar was trading versus the Indian rupee at Rs 50.94, dollar was at 3.0770 in terms of the Malaysian ringgit and the US currency was at 6.3086 against the Chinese yuan. Inter bank buy/sell rates for taka against dollar on Thursday. 81.78. 81.80 (previous 81.78-81.80). Call Money Rates: 11.00-12.00 percent (previous 07.00-12.50 percent).
In the final Asian trade, the yen softened after Tokyo importers took advantage of its broad rally the day before, while risk currencies such as the Australian dollar were poised to end the week sharply lower on fresh concern about the health of the global economy.
The dollar versus the Indian rupee was available at Rs 51.17, against the Malaysian ringgit, the greenback was at 3.0770 and the US currency in terms of the Chinese yuan at 6.3042.
The dollar versus the Indian rupee was available at Rs 51.17, against the Malaysian ringgit, the greenback was at 3.0770 and the US currency in terms of the Chinese yuan at 6.3042.
At the weekend euro climbed to a three-week peak against dollar as concerns about a slowdown in the euro zone ebbed, but euro could reverse gains next week as bond auctions in Spain and Italy draw scrutiny. Any sign of eroding confidence in the bonds of these peripheral countries could undermine euro. Economic data from Germany and a meeting of European finance ministers will also be key events for the week.