As a result of forward dollar buying to clear payments by importers and partly because of poor law and order situation, the dollar hit the high at Rs 87 during the week ended on Saturday, August 20, 2011.
In the interbank market deals, the rupee lost 31 paisa against dollar for buying at 86.95 and 30 paisa for selling at 86.98. On the open market, the rupee lost 25 paisa in terms of dollar for buying and selling at 86.55 and 86.75. The rupee also lost Rs 1.32 versus euro for buying and selling at Rs 124.29 and Rs 124.79.
In the middle of the week, the rupee started losing sharply as a result of higher dollar buying by importers to clear payments. The importers continued dollar buying and the rupee hit low at 87 versus dollar. In the meantime, country's foreign exchange reserves rose to 18.04 billion dollars in the week ending August 13, from 17.97 billion dollars the previous week.
It is expected that the domestic currency would remain under pressure as dollar payments are higher in the month of July and August because of stronger oil demand and debt payments.
The rupee may face tough time this week due to costly payment for oil and stalled payments from a bailout programme by the International Monetary Fund (IMF) is also a negative impact on the rupee. The IMF has criticised the government for its implementation of fiscal reforms, and has held back the sixth tranche of an 11 billion dollars bailout programme.
INTER-BANK MARKET: On Monday, the rupee maintained its week-end level in terms of dollar for buying and selling at 86.64 and 86.68. On Tuesday, the rupee picked up 6 paisa in relation to the greenback for buying at 86.58 and 5 paisa for selling at 86.63.
On Wednesday, the rupee shed 10 paisa against dollar for buying at 86.68 and 7 paisa for selling at 86.70.
On Thursday, the rupee shed 12 paisa in relation to dollar for buying at 86.80 and 15 paisa for selling at 86.85.
On Friday, the rupee lost 4 paisa versus dollar for buying at 86.84 and 3 paisa for selling at 86.88.
On Saturday, the rupee shed 11 paisa in relation to dollar for buying at 86.95 and 10 paisa for selling at 86.98 in process of forward buying of greenback.
OVERSEAS OUTLOOK FOR DOLLAR
In the first Asian trade, the euro extended its rally against Swiss franc to more than 3 percent on Monday after a Swiss newspaper report said the Swiss National Bank is poised to set a limit for the euro-Swiss franc exchange rate and would use all means to defend it.
The target was likely to be a little over 1.10 francs per euro so that the SNB can gradually raise it, the SonntagsZeitung said on Sunday.
The euro surged 3.3 percent to 1.14400, pulling further away from a record low of 1.00750 franc hit last week on trading platform EBS. The dollar also rallied against Swiss franc, surging 2.7 percent to 0.79883.
The dollar was against Indian rupee at Rs 45.34, versus Malaysian ringgit at 2.9810 and at 6.392 versus Chinese yuan.
During the second Asian trade, the euro dipped against dollar, having eased off the previous day's three-week high, with the focus on whether a Franco-German summit would lay the groundwork for further measures to help quell the eurozone's sovereign debt crisis.
The euro clun g to much of the gains it had made on Monday, cheered by news that the European Central Bank spent a record 22 billion euros on government debt last week, and signs of stabilisation in equity markets.
The single currency faced a crucial test on charts at levels just under $1.45. Trend line resistance drawn off peaks hit in early June and late July comes in rou ghly around $1.4470 to $1.4480.
The dollar was available at Rs 45.34 versus Indian rupee, at 2.9690 versus Malaysian ringgit and at 6.3886 in terms of Chinese yuan.
Bangladesh Inter bank buy/sell rates for taka against dollar on Tuesday were 74.62/74.70 (previous 74.73/74.74). call money rates 11.00-12.00 percent (previous 8.50-12.00 percent).
In third Asian trading, the euro sank under top of its daily Ichimoku cloud, hurt by lack of progress in talks over a common euro zone bond and weaker-than-expected German GDP, while Swiss franc stayed under pressure on expectations of imminent action to curb its strength.
The European currency fell 0.2 percent after it failed to test a major resistance area at 1.4470-80, but support was found above its Tuesday's intra-day low around $1.4355 and its 100-day moving average.
The dollar was available for Indian currency at treated late trading session against both euro and dollar. Inter bank buy/sell rates for the taka against dollar on Thursday were 74.40/74.53 (previous 74.55/74.70) and Call Money Rates 11.50-12.00 percent (previous 10.00-12.00 percent).
In the final Asian trade, US dollar was holding modest gains, after a raft of weak US economic data and concerns about European banks sent skittish investors piling into Treasuries.
Rising fears of another global recession hammered stocks, with the Nasdaq plunging more than 5 percent, while European equities suffered their biggest daily fall in 2.5 years as banks took a beating.
The dollar index, which tracks its performance against a basket of major currencies, rose 0.2 percent to 74.371, though these gains were somewhat grudging as the United States has plenty of its own troubles.
The dollar was available at Rs 45.74 for Indian rupee, at 2.9865 versus Malaysian ringgit, and at 6.3969 against Chinese yuan.
At the week-end, dollar plumbed a record low against yen and weakened against euro, but respite could be in sight for it if the global economic landscape got gloomier.
The euro gained about 0.3 percent against dollar so far in August while the greenback lost around 1.2 percent versus yen. The dollar fell against yen on Friday by a Wall Street Journal report cited Japan's top currency official saying Japanese authorities do not plan to intervene often.
OPEN MARKET RATES: On August 15, the rupee fell by 30 paisa versus dollar for buying and selling at 86.50 and 86.70. The rupee shed 74 paisa in relation to the euro for buying and selling at Rs 123.71 and Rs 124.21.
On August 16, the rupee gained 10m paisa versus US currency for buying ant selling at 86.40 and 86.60. The rupee, however, lost 57 paisa in relation to euro for buying and selling at Rs 124.28 and Rs 124.78.
On August 17, the rupee appreciated by 5 paisa versus US currency for buying and selling at 86.35 and 86.55. The rupee also gained in terms of the euro, rising 9 paisa for buying and selling at Rs 124.19 and Rs 124.69.
On August 18, the rupee gave up 5 paisa versus US currency for buying and selling at 86.40 and 86.60. The rupee also slid in relation the euro, losing 7 paisa for buying and selling at Rs 124.26 and Rs 124.76.
On August 19, the rupee shed 10 paisa versus US currency for buying and selling at 86.50 and 86.70. The rupee followed the same trend in relation to the euro, losing 99 paisa for buying and selling at Rs 123.27 and Rs 123.77.
On August 20, the rupee shed 5 paisa versus US currency for buying and selling at 86.55 and 86.75. The rupee also fell versus euro, losing Rs 1.02 for buying and selling at Rs 124.29 and Rs 124.79.
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