The rupee firmly held its prevailing levels versus dollar, but fluctuated sharply versus euro, last week ending on May 13, 2006.
The rupee came under pressure versus euro and the single European currency crossed the Rs 77 level on dollar's weakness in international markets, market men said.
In the interbank market, the rupee performed well most of the time and was up by five paisa at Rs 60.02 and Rs 60.03 versus dollar for buying and selling, respectively, despite the rising demand by the corporate sector, analysts said.
However, in the open market the rupee lost 3 paisa versus dollar at Rs 60.20 and Rs 60.25 for buying and selling, respectively, while it lost 96 paisa versus euro at Rs 77.36 and Rs 77.46 for buying and selling, respectively.
Market analysts were anticipating that the rupee would show some minor changes versus dollar as the supply position was good following the unprecedented rise in the foreign exchange reserves.
Some money experts were of the view that the rupee might depict lower trend due to fiscal year-end payments, whereas in case of easy availability of dollars the local currency may limit its losses.
According to the weekly statement by the State Bank of Pakistan (SBP), the foreign exchange reserves increased by 38.3 million dollars to $13,054.3 million.
WORLD MARKET SCENARIO: In the world market, the US currency plunged to eight months low against yen below the psychological 110 level. The dollar drifted lower on several factors, namely widening US trade deficit and rumours that China might allow its currency to keep fluctuating versus major currencies.
The dollar moved both ways ahead of US Federal Open Market Committee's meeting on Wednesday.
In the middle of the week, the dollar gave up its weakness after US treasury report on currency practices said China was not a currency manipulator.
The US Federal Reserve lifted interest rates for a 16th straight time on Wednesday and, while leaving the door open to a possible pause, said it would keep raising them if necessary to check inflation. The dollar sank to a 12-month low against the euro, pressured by market expectations that the Federal Reserve may take a breather in its two-year campaign to raise US interest rates.
OPEN MARKET RATES: On Monday, the euro gained 26 paisa at Rs 76.40 and Rs 76.50 for buying and selling, respectively. The rupee moved little versus dollar for buying and selling at Rs 60.17 and Rs 60.22, respectively.
On Tuesday, the rupee gained 2 paisa versus dollar for buying and selling at Rs 60.15 and Rs 60.20, dealers said.
The euro shed 95 paisa for buying and selling at Rs 75.75 and Rs 75.85, losing its value in world markets.
On Wednesday, the rupee firmly held its overnight levels versus the US currency for buying and selling at Rs 60.15 and Rs 60.20.
The euro recovered 75 paisa for buying at Rs 76.50 and 55 paisa for selling at Rs 76.60, touching new high.
On Thursday, the rupee gained 38 paisa versus euro for buying at Rs 76.12 and 8 paisa for selling at Rs 76.52.
The local currency, however, shed 3 paisa against dollar for buying and selling at 60.18 and 60.23 on banks' demand for dollars to meet the payment requirements.
On Friday, the rupee lost two paisa versus dollar for buying at 60.20 and seven paisa for selling at 60.30, they added. The rupee shed 90 paisa versus the single European currency for buying and selling at Rs 77.05 and Rs 77.15, respectively.
INTERBANK RATES: On May 8, the dollar was available at Rs 60.07 and Rs 60.08 for buying and selling, respectively.
On May 9, the rupee maintained its overnight levels per dollar at Rs 60.07 and Rs 60.08.
On May 10, the rupee did not show any significant change. On May 11, the rupee moved a little with an increase of one paisa for buying and selling dollar at Rs 60.06 and Rs 60.07. On May 12, the rupee gained 3 paisa versus dollar for buying and selling at Rs 60.03 and Rs 60.04, respectively.
On May 13, the rupee gained one paisa versus dollar for buying and selling at Rs 60.02 and Rs 60.03.
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