The rupee moved both ways versus dollar in the currency market last week amid persistent demand for the US currency, money viewers said.
In the interbank market, the rupee firmly held its prevailing levels versus dollar for buying and selling at Rs 60.29 and Rs 60.31, respectively, amid increasing demand for dollars, moneychangers said.
In the open market, however, the rupee shed 10 paisa against dollar for buying and selling at Rs 60.70 and Rs 60.75, respectively, while it picked up nearly 80 paisa versus euro for buying and selling at Rs 76.53 and Rs 76.63, they said.
Market sources said that the general trend in the currency market was weak as the demand for dollars was high to meet the oil and other payments.
They said that it looked that the local currency would show divergent trend versus dollar. Rising demand for dollars was likely to push the rupee lower slightly and this factor may be a cause of declining trend in the foreign exchange reserves, showing an erosion of 71 million dollars to 13.040 billion dollar week ending on July 8, 2006, they added.
INTER-BANK MARKET RATES: On Monday, the rupee shed two paisa against dollar for buying and selling at 60.28 and 60.30, dealers said.
On Tuesday, the US currency was quoted at Rs 60.28 and Rs 60.29 for buying and selling, respectively, dealers said. For the remaining days of the week, the dollar traded in the band of Rs 60.28 and Rs 60.31.
GLOBAL SCENARIO FOR MAJOR CURRENCIES: In the beginning sessions of the week, the dollar was down versus major currencies on fading hopes for increase in the US interest rates after discouraging US job data.
An AFP report said that National Australian Bank currency strategists predicted that the BoJ would start its process of normalising interest rates over the next several years by raising interest rates by 25 basis points in coming days.
The euro managed to retain its firmness on speculations that the European Central Bank may raise its key rate by another quarter point on August 3.
The dollar drifted lower versus the yen and euro on receding expectations about the rise in the US interest rates in the month of August.
The yen was up on expectations of rise in the interest rates.
In the closing sessions of the week, the dollar moved up slightly versus major currency following tensions over the Middle East.
OPEN MARKET RATES: On July 10, the rupee was down by 5 paisa against dollar at Rs 60.60 and Rs 60.65, dealers said.
It shed 10 paisa versus euro for buying and selling at Rs 77.29 and Rs 77.39, respectively.
On July 11, the rupee shed 7 paisa for buying and selling at Rs 60.67 and Rs 60.72, respectively. The rupee, however, gained 34 paisa against euro for buying and selling at Rs 76.95 and Rs 77.05, dealers said.
On July 12, the rupee lost 3 paisa against dollar for buying and selling at 60.70 and 60.75 due to good demand for the greenback, they said.
The rupee was down 30 paisa against euro for buying and selling at Rs 77.25 and Rs 77.35, they said.
On July 13, the rupee gained 3 paisa versus dollar for buying and selling at 60.72 and 60.77, dealers said. The rupee, however, shed 17 paisa in terms of euro for buying and selling at Rs 77.08 and Rs 77.18, respectively.
On July 14, the rupee gained 2 paisa against dollar for buying and selling at 60.70 and 60.75, they said.
The rupee picked up 15 paisa versus euro for buying and selling at Rs 76.73 and Rs 76.83, respectively.
On July 15, the rupee maintained its overnight levels, while it gained 20 paisa in relation to euro for buying and selling at Rs 76.53 and Rs 76.63, moneychangers said.
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