Two-way trading was seen in the currency market last week ending on August 6, 2005, as the rupee maintained firm posture versus dollar. It, however, lost lustre in terms of euro.In the inter-bank market, the rupee did not move sharply against dollar and traded within the band of Rs 59.54 to Rs 59.56, dealers said.
In the open market, the rupee firmly held on to its level versus dollar at Rs 60.45 and Rs 60.50. However, versus the euro, it lost 80 paisa for buying and selling at Rs 73.80 and Rs 74.00.
After the revaluation of Chinese yuan, the rupee somehow maintained firm trend in terms of dollar but it lost stability versus euro as the single European currency started showing its muscle against major currencies in the world markets.
Commenting on rupee's firmness versus dollar, money experts said that there were some major demands from corporate sector but increasing trend in remittances might not allow the rupee to bow down at all.
Under the circumstances, when Indian rupee is drifting lower nowadays, the country's monetary authority has to keep an eye over Pak rupee fluctuation versus dollar to keep pace with other competitors in the international markets, money experts said.
On the one hand, dollar's weakness against major currencies is supporting the rupee by holding on to its level, but on the other hand it is dire need of the time to watch developments in currency regime of the neighbouring and other exporting countries, they added.
After the Chinese yuan revaluation, most of the Asian states are trying to avail of this opportunity by raising their exports, they observed.
Yuan was so far stronger than Indian rupee giving it an edge and helping Indian exports to flood world markets, money experts said.
The Pak rupee is quite stronger compared with Indian rupee, which is a factor that the State Bank of Pakistan (SBP) must be concerned over, more so the government.
Unless Pak rupee matches the Indian currency or is even lower, Pakistan's exports will languish.
The Export Promotion Bureau (EPB), according to a report, has invited a leading super markets chain in the US, Scars K Mart, next month. If the bid succeeds, it would greatly help relieve Pak exports as well the Pak currency.
Similar or other methods will keep Pak currency respectably placed and products competitive in the face Indian currency.
INTER-BANK RATES: On Monday, the rupee maintained a firm posture versus the dollar in inter-bank deals, retaining its weekend level versus dollar for buying and selling at Rs 59.62 and Rs 59.64, dealers said.
On Tuesday, the rupee-dollar official parity rates fluctuated slightly for buying and selling at Rs 59.63 and Rs 59.65, marketmen said.
On Wednesday, the rupee did not show a major change in relation to dollar for buying and selling at Rs 59.63 and Rs 59.64.
On Thursday, the rupee shed slightly versus dollar for buying and selling at Rs 59.65 and Rs 59.66, dealers said.On Friday, the rupee firmly held its overnight levels versus dollar for buying and selling at Rs 59.65 and Rs 59.66.
On Saturday, the local currency gained one paisa against dollar for buying and selling at Rs 59.64 and Rs 59.65, respectively.
OPEN MARKET RATES: On August 1, the rupee gained five paisa versus dollar for buying at Rs 60.40 in open market, while it maintained the selling level at Rs 60.50.
The rupee did not show any change for buying and selling versus euro for buying and selling at Rs 73.00 and Rs 73.20.
On August 2, the rupee retained its firmness, showing no change versus dollar for buying and selling at Rs 60.40 and Rs 60.50, dealers said.
The rupee, however, gained 10 paisa in relation to euro for buying and selling at Rs 72.90 and Rs 73.10, respectively.
On August 3, the rupee lost 50 paisa against euro as the local currency continued its weakness on the buying and selling counters at Rs 73.40 and Rs 73.60, respectively.
The single European currency has started showing its muscles on the back of dollar's vulnerability in the international markets, dealers said.
The rupee maintained its overnight levels versus dollar for buying and selling at Rs 60.40 and Rs 60.50, respectively.
On August 4, the rupee extended its slide versus euro, losing 10 paisa more for buying and selling at Rs 73.50 and Rs 73.70, respectively.
On August 5, the rupee maintained a firm posture versus euro at Rs 73.80 and Rs 74.00 for buying and selling, respectively.
On August 6, the rupee managed to gain five paisa against dollar on the buying side at Rs 60.40 while it did not show any change for selling at Rs 60.50, dealers said. The rupee did not show any major change versus euro.
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