THE RUPEE: all round losses

The rupee suffered all round losses against both dollar and euro during the week ended on October 22, 2011. In interbank dealings, the rupee lost 19 paisa in relation to dollar for buying at 86.70 and 20 paisa for selling at 86.75.
In the open market, the rupee lost 70 paisa to Rs 87.80 for buying and 50 paisa for selling at 88.10. The rupee dropped Rs 1.67 against euro for buying and selling at Rs 121.56 and Rs 122.06.
INTER-BANK MARKET: On Monday, the rupee shed two paisa against dollar for buying at 86.53 and one paisa for selling at 86.56.
On Tuesday, the rupee lost 7 paisa in relation to dollar for buying at 86.60 and 8 paisa for selling at 86.64.
On Wednesday, the rupee lost 9 paisa for buying at 86.69 and 10 paisa for selling at 86.74. On Thursday, the rupee moved down by one paisa in relation to dollar for buying at 86.70 while it maintained its overnight level for selling at 86.74.
On Friday, the rupee was nearly unchanged in relation to the dollar as it did not show any change for buying at 86.70 while it slipped by one paisa for selling at 86.75.
OVERSEAS MARKET OUTLOOK FOR DOLLAR: In the Asian first day trading, euro hovered near a one-month high on Monday after a G20 summit boosted hopes that the EU would decisively address the region's debt woes this week, with traders saying additional short-covering may allow the currency to eke out further gains.
The dollar was at Rs 49.01 versus Indian rupee, at 3.1200 in terms of Malaysian ringgit and at 6.3736 in relation of the Chinese yuan. Bangladesh inter bank buy/sell rates for taka against dollar were 75.72-75.85 (previous 75.68-75.72) and Call Money Rates: 7.25-9.50 percent (previous 7.25-9.50 percent).
In the second Asian trade, euro rose but remained below a one-month high hit on Monday, having taken a hit after Germany tempered hopes that European leaders would soon come up with a quick, comprehensive solution to the euro zone's debt crisis.
The euro regained some ground after a 1.1 percent drop on Monday, with market positioning and some technical signals suggesting that its recent short-covering rally may be running out of steam.
German Finance Minister Wolfgang Schaeuble poured cold water on the euro's rally on Monday, saying an October 23 European Union summit would not provide a "definitive solution" to the region's debt crisis.
Yuan closed down against dollar after the central bank set a weaker mid-point, a move traders said signalled that the government was initiating a pause in yuan appreciation.
The dollar was trading versus Indian rupee at 49.01, at 3.1200 versus Malaysian ringgit and at 6.3736 in relation to Chinese yuan. Inter bank buy/sell rates for taka against dollar were 75.86-75.89 (previous 75.72-75.85) and Call Money Rates: 7.25-12.00 percent (previous 7.25-10.00 percent).
In the third Asian trade, euro rose as short covering and buying by macro funds kicked in, following a steep fall in dollar versus some Asian currencies after Japan and South Korea agreed to bolster their currency swap arrangements in a bid to help ease market tension.
A more than five-fold expansion of the swap arrangements will lift the amount of foreign currency that South Korea can immediately mobilise in case of emergency to more than $370 billion.
The decision prompted unloading of dollars by offshore funds, which spilled over to other dollar/Asia pairs with euro and Australian dollar also gaining against greenback.
Yuan closed slightly higher versus dollar after People's Bank of China set its mid-point marginally stronger. Inter bank buy/sell rates for taka against dollar were 75.90-75.95 (previous 75.86-75.89) and Call Money rates: 8.00-15.00 percent (previous 7.25-12.00 percent).
In the final Asian trade, euro clung to gains eked out in volatile overnight trade but looked increasingly vulnerable as European leaders remained deeply divided ahead of a weekend summit on the region's debt crisis.
The euro, last at $1.3786, kept well off its nine-month low hit in early October. However, despite a widening in spreads on yields between safe-haven German Bunds and other European countries.
The yuan closed a touch higher versus dollar after People's Bank of China set a slightly stronger mid-point in the wake of a fall in the US Dollar Index.
The yuan remained more than 400 pips lower than its record trading high hit on October 11 right before the US Senate granted approval to a bill aimed at pressing China to let the yuan appreciate faster, saying an artificially weak yuan was robbing jobs in the United States.
Dollar versus Indian rupee was at Rs 49.80, and against Malaysian ringgit at 3.1505.
In the fourth Asian trade, euro slid 0.4 percent to $1.3703, dropping toward the bottom of this week's range of roughly between $1.3650 to $1.3900. The single currency fell 0.5 percent versus the yen to 105.16 yen.
Signs that European policymakers were struggling to reach consensus on measures to contain the debt crisis weighed on the euro, and its drop gained steam as falls in commodities and Asian shares dragged cross/yen pairs lower.
The dollar was trading versus Indian rupee at Rs 49.39, versus Malaysian ringgit at 3.1265 and at 6.379 versus Chinese yuan.
Inter bank buy/sell rates for taka against dollar on Thursday. 75.94-75.95 (previous 75.90-75.95) Call Money Rates: 9.25-15.00 percent (previous 8.00-15.00 percent).
At the week-end, US dollar fell broadly and hit a record low against yen on hopes that Europe was closer to solving its debt crisis and talk the Federal Reserve may take new measures to boost growth.
France and Germany said in a joint statement that European leaders would discuss a solution to the crisis on Sunday, but no decisions would be adopted before a second meeting to be held by Wednesday at the latest.
Optimism European leaders will take more measures to contain the crisis kept investor appetite for risk alive, sending US stocks sharply higher and dampening demand for the safe-haven greenback.
Besides, China is set to show the world that its currency policy begins and ends at home, slowing down the yuan's appreciation to shield exporters from a global economic downturn and show US lawmakers they cannot push the pace of reform.
Beijing can argue that the economic fundamentals alone suit a period of currency stability, never mind that the US Senate would be up in arms after passing legislation designed to force the pace of appreciation, or that the world at large wants China to ramp up consumption to boost global growth.
OPEN MARKET RATES: On October 17, the rupee gained 30 paisa in terms of dollar for buying and selling at 86.80 and 87.30. The rupee also picked up 30 paisa against euro for buying and selling at Rs 120.05 and Rs 120.55.
On October 18, the rupee did not show any variation against dollar for buying and selling at 86.80 and 87.30, while it gained sharply by Rs 1.65 versus euro for buying and selling at Rs 118.40 and Rs 118.90.
On October 19, the rupee fell against the dollar by 30 paisa for buying at 87.10 and 10 paisa for selling at 87.40. The rupee fell Rs 1.73 versus euro for buying and selling at Rs 120.13 and Rs 120.63.
On October 20, the rupee shed 30 paisa against dollar for buying and selling at 87.40 and at 87.70. The rupee, however, gained 75 versus euro for buying and selling at Rs 119.38 and Rs 119.88.
On October 21, the rupee shed 40 paisa versus dollar for buying and selling at 87.80 and at 88.10. The rupee lost Rs 1.38 in terms of euro for buying and selling at Rs 120.71 and Rs 121.21.
Firmness prevailed on the money market on Saturday in process of trading, dealers said.
On October 22, the rupee retained its levels in relation to dollar for buying and selling at 87.80 and 88.10. The rupee, however, lost 85 paisa in terms of euro for buying and selling at Rs 121.56 and Rs 122.06.