The rupee depicted mixed pattern against dollar, while it lost steeply versus euro during the week ended on January 15, 2011. On the inter-bank, the rupee rose by 26 paisa in relation to dollar for buying at 85.48 while it also dropped 23 paisa for selling at 85.54.
On the open market, the rupee lost 20 paisa in terms of dollar for buying and selling at 85.90 and 86.10. It, however, came down sharply against euro shedding Rs 4.45 for buying and selling at Rs 114.55 and Rs 115.05. The feature of the week was rupee's weakness as it failed to lift from bottom side versus single European currency. The euro appreciated in relation to the major currencies of the world. It was noticed that as a result of strong export earnings and rising trend in the remittances, the rupee resisted fall versus dollar.
In a single month of December 2010, the country received 2.127 billion dollars from exports and according to the State Bank of Pakistan (SBP) during the six months of current fiscal year, remittances reached 5.2 billion dollars, which is higher compared to the same period of the last fiscal year.
These positive developments may help the rupee to maintain its present levels, otherwise it was anticipated that strong dollars' buying by the importers would push down the rupee in days to come.
According to a report, during the six months of the currency fiscal year 2010-2011, the foreign direct investment (FDI) fell by 14.5 percent, which is an indication that the dollar supply may shrink in the coming days. At the same, this factor might cause weakness of rupee versus dollar in the coming days.
INTER-BANK MARKET RATES: On Monday, the rupee was up by three paisa against dollar for buying at 85.72 and two paisa for selling at 85.75 despite the rising demand for the US currency.
On Tuesday, the rupee shed one paisa against dollar for buying at 85.73 and two paisa for selling at 85.77.
On Wednesday, the rupee was higher by four paisa against dollar for buying and selling at 85.69 and 85.73.
On Thursday, the rupee was higher by four paisa against dollar for buying at Rs 85.65 and three paisa for selling at 85.70.
On Friday, the rupee rose by 10 paisa against dollar for buying and selling at 85.56 and 85.60. On Saturday, the rupee gained eight paisa against dollar for buying at 85.48 and six paisa for selling at 85.54.
OVERSEAS OUTLOOK FOR DOLLAR VS OTHER CURRENCIES: In the first Asian trade, the euro touched four-month lows against dollar on Monday as stops were triggered amid mounting worries about Europe's debt crisis, after a source said that Portugal was under growing pressure to accept EU/IMF aid.
The single currency fell to lows not seen since mid-September, slipping as deep as $1.2860 on trading platform EBS, after stops around $1.2900 and $1.2870 were triggered.
Although the euro later pared its losses on short-covering, market players said the single European currency looked vulnerable due to worries about the level of demand at euro zone debt auctions coming up later in the week.
The yuan closed lower versus dollar after People's Bank of China set a slightly weaker mid-point to reflect but lagged a rise in US dollar index, which has jumped 2.5 percent.
Indian rupee was trading at Rs 45.38 in relation to US currency and Malaysian ringgit was available at 3.0655. Inter-bank buy/sell rates for the taka against dollar were. 71.00/71.00 (previous 71.00/71.00); Call Money Rates: 15.00 percent (previous 12.00-15.00 percent).
In the second Asian trade, the euro hovered above a four-month trough after Japan said it might buy about a fifth of the bonds a European rescue fund plans, to sell later this month to finance its bailout scheme for Ireland.
But Finance Minister Yoshihiko Noda suggested that Japan would use its euro cash holdings to buy the bonds, dampening some of the initial excitement from traders who had thought the move might involve fresh buying of the European currency.
Indian rupee was trading at Rs 45.25 versus dollar; Malaysian ringgit was trading at 3.0710 in terms of the US currency; and Chinese yuan at 6.621.
In the third Asian trade, the euro made thin gains but with limited ability to rise much as caution gripped the market ahead of debt sales by highly indebted euro zone countries.
Portugal was due to tap bond investors on Wednesday while Spain was looking to sell up to 3 billion euros ($3.89 billion) worth on Thursday. Markets were keen to see if they could obtain funding at a sustainable cost or if they would be forced to turn to the European Union and IMF for help.
Interbank buy/sell rates for the taka against dollar on Wednesday: 71.00/71.00 (previous 71.00/71.00); Call Money Rates: 10.00-15.00 percent (previous 13.00-15.00 percent).
The yuan ended up on the dollar as the People's Bank of China set its reference rate at a record high, kicking off a new leg of appreciation for the yuan ahead of President Hu Jintao's visit to the United States. But the central bank was apparently careful not to fan excessive hopes of how much the yuan can appreciate as it did not let the yuan's mid-point breach the psychologically important 6.60 against dollar, with traders citing concerns over capital inflows as one of the key factors.
Indian rupee was trading at Rs 45.15 versus dollar and Malaysian ringgit was available at 3.0625, while Chinese yuan was at 6.609.
In the fourth Asian trade, the euro slipped from one-week highs after short-covering triggered by Portugal's successful debt auction the previous day ran its course and traders looked to debt sales by Spain and Italy.
Some analysts said hopes for further policy responses by the euro zone to tackle the debt woes were helping the euro amid talk of increasing rescue funds, but they cautioned that it was too early to bet that anything substantial would be agreed at a eurogroup finance ministers' meeting early this week.
Indian rupee was trading at Rs 45.11 versus dollar, Malaysian ringgit at 3.055, and Chinese yuan was at 6.597.
Interbank buy/sell rates for the taka against dollar on Thursday: 71.04/71.05 (previous 71.00/71.00); Call Money Rates: 10.00-15.00 percent (previous 10.00-15.00 percent).
In the final Asian trading session, the euro succumbed to light profit-taking, a day after staging its biggest surge in six months on solid debt sales by Spain and tough talk on inflation by the chief of the European Central Bank. Speculation that European policy-makers may top up their war chest against attacks on euro zone sovereign debt was adding fuel to short-covering even though many market players suspected whether worries about the solvency of peripheral euro zone members would persist.
Indian rupee was trading at Rs 45.15 versus dollar, Malaysian ringgit at 3.0625 and Chinese yuan was at 6.609.
At the weekend, the euro headed for its best week in more than 1-1/2 years and could extend gains to following week after successful securities auctions by indebted euro zone members calmed fears of a credit crisis in the region.
The euro was last at $1.3374, up 3.8 percent week and edging closer to key resistance at $1.35. Analysts said the recovery could continue in the near term, though gains above $1.35 may be difficult given nervousness over large debt supply from weaker euro zone economies in 2011.
OPEN MARKET RATES: On January 10, the rupee showed divergent trend as it lost 15 paisa in terms of dollar for buying at 85.85, and gained four paisa for selling at 85.86. The rupee, shed 20 paisa in relation to euro for buying and selling at Rs 110.30 and Rs 110.80.
On January 11, the rupee depicted no change in relation to the dollar for buying at 85.85. It, however, lost 19 paisa for selling at 86.05. The rupee shed 35 paisa in terms of uro for buying and selling at Rs 110.65 and Rs 111.15.
On January 12, the rupee held its overnight level versus dollar for buying at 85.85, and gained five paisa for selling at 86.00. The rupee she 80 paisa against euro for buying and selling at Rs 111.45 and Rs 111.95.
On January 13, the rupee shed five paisa against dollar for buying and selling at 85.90 and 86.05. The rupee came down sharply by Rs 1.10 against euro to Rs 112.55 and Rs 113.05.
On January 14, the rupee did not show any variation versus US currency for buying at 85.90 while it shed five paisa for selling at 86.10. The rupee lost Rs 1.95 for buying and selling at Rs 114.45 and Rs 114.95.
On January 15, the rupee shed five paisa versus US currency for buying at 85.95 while it showed no change for selling at 86.10. The rupee continued its slide, trimming its losses after losing 10 paisa for buying and selling at Rs 114.55 and Rs 115.05.