The rupee drifted lower versus dollar last week ending on November 18, 2006, on strong demand for the US currency. In the interbank market, the rupee shed 10 paisa versus dollar at Rs 60.82 and Rs 60.83 for buying and selling, respectively.
Same trend was observed in the open market as the rupee lost. 18 paisa in terms of dollar for buying and selling at Rs 60.88 and Rs 60.94, but did not show any significant change versus euro at Rs 77.65 and Rs 77.75 for buying and selling, respectively.
The rupee, in the beginning of the week, kept its downward revision versus euro.
Despite easy supplies of dollars, the rupee drifted lower as importers made extensive purchases to meet their import payments, money experts said.
According to State Bank of Pakistan (SBP) data, remittances showed improvement of 19 percent during July-October. There were reports that overseas workers were investing their earnings in the housing business, which helped the remittances to lift to higher level.
In the meantime, the country's foreign exchange reserves hit an all-time high of 13.111 billion dollars.To face emerging challenge, most of the Asian and Far East countries depreciated their currencies, market experts observed.
From July 1, 2005 till November 13, 2006, the rupee depreciated 4.41 percent against dollar to Rs 60.70 and Rs 60.75, while it lost 7.02 percent versus euro for buying and selling at Rs 77.65 and Rs 77.75. It shed 7.30 percent in relation to pound sterling at Rs 115.50 and Rs 115.60, and the Pak rupee lost 8.03 at Rs 1.39 and Rs 1.41 against the Indian rupee.
Till November 13, 2006, the rupee has moved down against Bangladesh taka.OPEN MARKET RATES: On Monday, the rupee lost 15 paisa versus euro at Rs 77.65 and Rs 77.75 for buying and selling, respectively, while it moved in a narrow band versus dollar for buying and selling at 60.70 and 60.75, dealers said.
On Tuesday, the rupee gained 2 paisa versus dollar for buying and selling at 60.68 and 60.73, respectively, while it picked up 30 paisa in terms of euro for buying and selling at Rs 77.35 and Rs 77.45, they said.
On Wednesday, the rupee shed 2 paisa versus dollar for buying at Rs 60.70 and lost 7 paisa for selling at 60.80, they said.
The rupee held its overnight levels versus euro for buying and selling at Rs 77.35 and Rs 77.45, they said.
On Thursday, the rupee lost 8 paisa for buying at Rs 60.78, and 5 paisa for selling at Rs 60.85 versus dollar, dealers said.
The rupee also lost 25 paisa against euro for buying and selling at Rs 77.60 and Rs 77.70, they said. On Friday, the rupee shed 2 paisa versus dollar for buying at 60.80 and 5 paisa for selling at 60.90, dealers said.
The rupee, however, gained 20 paisa in relation to euro for buying and selling at Rs 77.40 and Rs 77.50, they added.
On Saturday, the rupee shed 8 paisa versus dollar for buying at 60.88 and 4 paisa for selling at 60.94, dealers said.
The rupee followed suit versus euro, shedding 25 paisa for buying and selling at Rs 77.65 and Rs 77.75, respectively.
WORLD DOLLAR OUTLOOK: At the week's opening, the dollar did not show any significant movement against major currencies as China's State Information Centre said on Monday that China should diversify its $1 trillion foreign exchange reserves - the world's largest - by building up strategic reserves of crude oil, metals and bulk commodities.
On Tuesday, the dollar sheds its weakness as investors reassessed the chances of foreign central banks' cutting back their US currency holdings.
On Wednesday, the dollar in Asian and Far East markets struggled to edged up against yen pointed to a slowing US economy.
The market was looking ahead to a bevy of US reports that should further help to shape interest rate expectations, including minutes due on Wednesday from the Federal Reserve's last policy meeting, and consumer prices data on Thursday.
On Thursday, the yen rose against dollar and euro after a top Chinese central bank official was quoted as saying that the bank had been buying the Japanese currency for its $1 trillion in foreign exchange reserves
At the weekend, the dollar came under pressure, lending weight to the case for the Federal Reserve to keep interest rates unchanged for the time being.
INTER-BANK RATES: On November 13, the rupee inched up with little gain versus dollar for buying and selling at 60.71 and 60.73, respectively.
On November 14, the rupee was down by one paisa against dollar for buying and selling at 60.72 and 60.74, respectively.
On November 15, the rupee depreciated against dollar by one paisa for buying at 60.74 and 60.75, respectively.
On November 16, the rupee lost 4 paisa versus dollar for buying and selling at 60.79 and 60.81, respectively.
On November 17, the rupee shed 2 paisa against dollar for buying and selling at 60.81 and 60.83, respectively.
On November 18, the rupee managed to hold its overnight levels versus dollar for buying and selling at 60.82 and 60.83, respectively.
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