The rupee drifted lower against both dollar and euro during the week ended on April 3, 2010. On the inter-bank market, the rupee lost 53 paisa against dollar for buying at 84.43 and 51 paisa for selling at 84.46. On the open market, the rupee felling 20 paisa against US currency for buying at 84.40 and 10 paisa for selling at 84.50.
In relation to euro, the rupee shed 65 paisa for buying and selling at Rs 113.35 and Rs 113.85. The rupee fall was expected at the end of third quarter of the fiscal year as it came under pressure due to clearance of oil and some other payments.
Besides, delay in the fifth tranche of the International Monetary Fund (IMF) was another factor behind the slide in the rupee value. According to the State Bank of Pakistan's (SBP) weekly data, the country's foreign exchange reserves rose to 14.94 billion dollars in the week ending on March 27 from 14.81 billion dollars in the previous week.
The IMF executive board will meet before mid-April to review Pakistan's loan after a meeting last month was postponed to enable a value-added tax law to be submitted to provincial assemblies-
INTER-BANK RATES: On Monday, the rupee gained two paisa in relation to dollar for buying and selling at 83.88 and 83.93.
On Tuesday, the rupee lost 10 paisa versus dollar for buying at 83.98 and seven paisa for selling at 84.00. On Wednesday, the rupee lost nine paisa for buying at 84.07 and 12 paisa for selling at 84.12 against dollar.
On Thursday, the rupee fell 13 paisa for buying against dollar at 84.20 and 12 paisa for selling at 84.24.
On Friday, the rupee lost 20 paisa against dollar for buying and 21 paisa for selling at 84.40 and 84.45 on surging demand by importers.
On Saturday, the rupee limited its decline against dollar to 3 paisa for buying at 84.43 and slid one paisa for selling at 84.46.
OVERSEAS OUTLOOK FOR DOLLARS: In the first Asian trade, the euro stabilised after its recent pounding, aided by short-covering, while the dollar lost ground to the Australian and New Zealand dollars in choppy trade driven largely by order-book cleaning ahead of the quarter-end.
The Swiss franc fell against the dollar and euro as players took profits on overstretched long franc positions, built up in recent days to test how far the Swiss central bank would allow it to rise after it hit record highs on the euro last week.
In the second Asian trade, the euro rose as investors pared some of their record short positions ahead of the end of the quarter and with sentiment also boosted by Greece's success in raising money from the debt market. The yen initially edged up against the dollar as Japanese exporters repatriated their overseas earnings, but greenback buying for Japan's new fiscal year starting on Thursday also seemed to emerge and later cut the yen's advance, traders said.
In the third Asian trade, the dollar hit a three-month high against the yen on Wednesday as the Japanese currency lost ground broadly, while the Australian dollar tripped after retail sales data dented expectations for an interest rate hike next week.
The euro held near $1.34, remaining vulnerable above 10-month lows as a bout of short-covering appeared to have run its course, with euro zone fiscal worries never far away.
In the fourth Asian trade, the dollar eased against the yen, taking a breather after hitting a three-month peak on speculation that Japanese investors will look for higher returns abroad now that the new fiscal year has started.
Analysts said the yen's broad slide this week had been fast partly due to flows linked to the month-end and quarter-end, but that now some traders may be more inclined to take profits from gains in the dollar and other major currencies.
In the fifth Asian trade euro fell against dollar and yen in Asia, with trading thinned by the Easter holidays ahead of key US jobs data due later in the day, dealers said.
The euro was quoted at 1.3568 dollars in Tokyo afternoon trade, down from 1.3582 dollars in New York late Thursday. The European single currency fell to 127.23 yen from 127.47. The dollar slipped to 93.75 yen from 93.89.
"Because of the Easter holidays, trade is not very active," said Masato Otsubo, a trader at Resona Bank. "Investors are also cautious ahead of the US payrolls data." At the week-end, the dollar firmed broadly, hitting a fresh 7-month high against the yen, after government data showed the US economy created private sector jobs that were the highest in almost three years.
The report suggests the US labour sector is on a gradual but steady recovery and should affirm expectations that the Federal Reserve would hike interest rates ahead of the European Central Bank, Bank of England and Bank of Japan.
The dollar is expected to fall in the week ahead as US economic data sends mixed signals on the strength of recovery, prompting the Federal Reserve to keep interest rates low.
Tuesday's release of the March 16 minutes of the Federal Reserve policy meeting will be scrutinised by investors for clues on Fed thinking on rates. Lower rates reduce the attractiveness of US assets and stem demand for the dollars to buy them.
Analysts cautioned though that the dollar outlook could change in an instant on Friday following release of March non-farm payrolls.
OPEN MARKET RATES: On March 29, the rupee shed 10 paisa against dollar for buying at 84.30 and five paisa for selling at 84.45. The rupee followed the same trend versus euro, losing 70 paisa for buying and selling at Rs 113.40 and Rs 113.90. On March 30, the rupee gained 15 paisa against dollar for buying at 84.15 and 10 paisa for selling at 84.35.
The rupee, however, fell five paisa versus euro for buying and selling at Rs 113.45 and Rs 113.95. On March 31, the rupee shed 15 paisa versus dollar for buying at 84.30 and 10 paisa for selling at 84.45. The rupee appreciated by 25 paisa versus euro for buying and selling at Rs 113.20 and Rs 113.70.
On April 1, the rupee posted gain of five paisa versus dollar for buying at 84.25 and 10 paisa for selling at 84.35, dealers said.
The rupee, however, fell versus euro, losing 15 paisa for buying and selling at Rs 113.35 and Rs 113.85. On April 2, the rupee lost 20 paisa for buying against dollar at 84.45 and 25 paisa for selling at 84.60.
The rupee was also down versus euro, losing 50 paisa for buying and selling at Rs 113.85 and Rs 114.35.
On April 3, the rupee recovered five paisa against dollar for buying at 84.40 and 10 paisa for selling at 84.50. The rupee also gained 50 paisa versus euro for buying and selling at Rs 113.35 and Rs 113.85.