A bullish sentiment was witnessed on the currency market as the rupee managed to recover modestly versus dollar during the week, ended on Friday (10-3-2012). In the interbank dealings the rupee appreciated by 13 paisa in terms of dollar for buying and selling at 90.75 and 90.77.
On the open market the national currency followed same trend, gaining 10 paisa in relation to dollar for buying and selling at 90.90 and 91.10, the rupee also rose by 82 paisa versus euro for buying at Rs 118.78 and picked up Rs 1.32 for selling at Rs 119.28.
As a whole, the general trend in the market was steadier as the rupee depicted firmness against dollar and euro. It was observed that the rupee did not react negatively against dollar in the absence of major oil payments but it is very much likely that the rupee may tumble due to strong demand for dollars to clear payments, especially for oil, which is trading around 125.65 dollars per barrel in the overseas market.
The supportive factor which is helping the rupee to resist steep losses versus the US currency is persistent increase in the remittances. In the first eight months of the current fiscal year, country's remittances sent by Pakistanis, living abroad, surged at 8.592 billion dollars.
Despite firm rupee marketmen expect that the payments to the International Monetary Fund (IMF) and other costlier oil bills may cause a slight decline in value of the rupee in terms of dollar.
INTER-BANK MARKET RATES: On Monday, the rupee posted fresh gain of 10 paisa in relation to dollar for buying at 90.88 and rose by 11 paisa for selling at 90.90.
On Tuesday, the rupee rose by three paisa in relation to dollar for buying at 90.85 while it, showed no change for selling at 90.90. On Wednesday, the rupee shed five paisa in relation to dollar for buying at 90.90 while it slipped by two paisa for selling at 90.92. On Thursday, the rupee rose by 13 paisa versus dollar for buying and selling at 90.77 and 90.79.
On Friday the rupee picked up two paisa in relation to dollar for buying and selling at 90.75 and 90.77.
OPEN MARKET RATES: On March 5, the rupee gave up weakness in relation to dollar, picking up five paisa for buying and selling at 91.00 and 91.20. Against euro, the rupee, appreciated by 80 paisa for buying and selling at Rs 119.60 and Rs 120.60.
On March 6, the rupee picked up 10 paisa versus dollar for buying and selling at 90.90 and 91.10. Against euro the rupee also gained 30 paisa for buying and selling at Rs 119.30 and Rs 120.30.
On March 7 the rupee was unchanged versus dollar for buying and selling at 90.90 and 91.10. Against euro the rupee also gained 15 paisa for buying at Rs 119.15 and rose by 65 paisa for selling at Rs 119.65.
On March 8 the rupee was unchanged versus dollar for buying and selling at 90.90 and 91.10. Against euro the rupee, however, lost 38 paisa for buying and selling at Rs 119.53 and Rs 120.03.
On March 9, the rupee managed to hold it's week-long levels in terms of dollar for buying and selling at 90.90 and 91.10. While versus euro the rupee shed 23 paisa for buying and selling at Rs 119.76 and Rs 120.26.
On March 10 the rupee retained the overnight levels in relation to dollar for buying and selling at 90.90 and 91.10. While versus euro the rupee gained 98 paisa for buying and selling at Rs 118.78 and Rs 119.28.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, dollar pulled away from a nine-month high hit on Friday as traders booked profits after the US currency rose nearly eight percent in about a month.
The dollar fell 0.6 percent versus yen to 81.31 yen, retreating from a high of 81.873 yen on Friday on trading platform EBS, the weakest level for the Japanese currency since late May 2011.
Indian rupee slipped to a six-week low on Monday weighed by persistent dollar demand from importers for oil payments as well as defence equipment purchases and weak local shares.
The rupee ended at 49.835/845 to dollar, after dipping to 49.9550, a level last seen on January 25, Thomson Reuters data showed. The currency closed at 49.50/51 on Friday. Inter bank buy/sell rates for taka against dollar: 81.60-81.84 (previous 81.60-81.80) Call Money Rates: 10.75-15.00 percent (previous 07.00-15.00 percent).
The yuan ended slightly lower against dollar after the People's Bank of China set its midpoint sharply lower, the biggest single-day percentage fall in 16 months, a move traders said signaled the government may allow a wider trading range. Spot yuan ended at 6.3067 versus dollar around midday on Monday, weaker than Friday's close of 6.2982.
In the second Asian trade, euro stood at $1.3216, having slid as low as $1.3160. Against the Aussie, it fetched A$1.2384 after climbing nearly one percent on Monday. It jumped more than one percent on the kiwi to NZ$1.6107.
The dollar versus the Indian rupee was trading at Rs 50.03, in relation to the Malaysian ringgit at 3.0200 per unit and the greenback was at 6.308 versus the Chinese yuan. Inter bank buy/sell rates for taka against dollar on Tuesday: 81.58-81.80 (previous 81.60-81.84). Call Money Rates: 11.00-13.00 percent (previous 07.00-15.00 percent)
In the third Asian trade, risk currencies bounced off multi-week lows but were still seen vulnerable, the Japanese yen held firm, as doubts over whether Greece can pull together a bond swap deal prompted players to cut exposure to risky assets.
The yuan closed down slightly versus dollar after the People's Bank of China set a weaker midpoint for a third day to track dollar's global strength. Spot yuan closed at 6.3099 versus dollar, slightly weaker than Tuesday's close of 6.3080 after the PBOC set the midpoint at 6.3213 compared with Tuesday's 6.3141.
Inter bank buy/sell rates for taka against dollar on Wednesday: 81.57-81.78 (previous 81.58-81.80). Call Money Rates: 11.00-15.00 percent (previous 07.00-15.00 percent). The dollar versus the Indian rupee was trading at Rs 50.60 and it was available against the Malaysian ringgit at 3.0290 per unit.
In the fourth Asian trade, yen dipped against dollar on a knee-jerk reaction to data showing Japan's current account swung to a record deficit in January, while risk currencies gained together with stocks on hopes Greece may secure a bond swap deal. The dollar was trading against the Indian rupee at Rs 50.28, versus the Malaysian ringgit the greenback was at 3.0115 and the US currency was available at 6.3152 in terms of Chinese yuan.
In the final Asian trade, euro edged lower on profit-taking after Greece said 85.8 percent of private creditors had accepted its bond swap offer, moving closer to securing fresh funds needed to avoid a messy debt default.
The single currency dipped about 30 pips or so after the announcement to an intraday low near $1.3224 and last stood at $1.3241, down 0.3 percent from late US trade on Thursday.
The yuan ended up slightly versus dollar on Friday after the People's Bank of China allowed the yuan's mid-point to post its biggest daily climb in four months, providing more evidence that the central bank is willing to let the currency move in a wider range. Spot yuan closed at 6.3107 versus dollar, stronger than Thursday's close of 6.3165. The dollar versus the Indian rupee was at Rs 49.97 and against the Malaysian ringgit, the greenback was trading at 3.0075.
At the week-end, the dollar soared, its best showing against major currencies this year, with strong jobs data suggesting the US economy was on the mend even as other economies struggle.
The greenback neared an 11-month peak above 82 yen and was on track for a fifth straight weekly gain against Japan's currency, its best run in almost five years. Fear of a euro zone recession, meanwhile, knocked the euro to a three-week low of $1.3095, overshadowing the completion of a debt swap that cut Greece's debt burden and cleared the way for more emergency aid.