THE RUPEE: rates stable

The rupee managed to recover modestly against the dollar on the currency market during the week, ended on 21 January, 2012. In the interbank dealings, the rupee picked up 18 paisa versus the dollar at 90.12 and it also gained 20 paisa for selling at 90.15.
In the open market, the rupee tracked the interbank market, rising 20 paisa in relation to the dollar for buying at 90.40 and it appreciated by 30 paisa for selling at 90.60. The rupee, however, fell sharply in terms of the euro, losing Rs 2.19 for buying and selling at Rs 116.35 and Rs 116.85.
The rupee resisted decline, instead it recovered due to easy supply of dollar, but it failed to retain its gain against the euro because the single European currency struggled to shed its weakness.
Commenting on the recent fall in the value of euro, local analysts were of the view that like many other currencies of the world, the euro also came under pressure but it is very much likely that the euro may move both ways versus the major currencies. If the dollar improves in the international market, the euro most likely depict the same trend in the coming days. The European Union Commissioner for the Internal Market Michel Barnier recently said that the euro is here to stay as a global currency and the eurozone will bounce back from its debt crisis.
Sharp decline in the single European currency, kept the currency traders in grip of uncertainties about its future direction and Barnier repeated his surprise at ratings agency Standard & Poor's decision last week to downgrade nine eurozone states, saying the currency bloc's 17 members had taken 'giant steps' toward restoring confidence. He told delegates to the Asian Financial Forum, 'let there be no mistake: this is not a crisis of the euro as a currency.'
The chief of the European Central Bank (ECB) also said that the euro will perform better this year, noting that, while the eurozone is showing signs of economic stabilisation, downward risks linger.
INTER-BANK MARKET RATES: On Monday, the rupee slipped in relation to dollar, losing two paisa against dollar for buying at 90.30 and shed three paisa for selling at 90.35. On Tuesday, the rupee depreciated by seven paisa in relation to the dollar for buying at 90.37 and it also shed five paisa for selling at 90.40.
On Wednesday, the rupee posted fresh gain of 17 paisa in relation to the dollar for buying at 90.20 and it also picked up 16 paisa for selling at 90.24. On Thursday, the rupee gained sharply in relation to the dollar, rising 19 paisa for buying at 90.01 and it rose by 21 paisa for selling at 90.03.
On Friday, the rupee could not retain its overnight firmness in relation to the dollar, losing 11 paisa for buying at 90.12 and it also shed 12 paisa for selling at 90.15.
OPEN MARKET RATES: On January 16, the rupee posed sharp gain of 60 paisa in terms of dollar for buying and selling at 90.60 and 90.90. While, the rupee extended its overnight gain in relation to euro, rising Rs 1.17 for buying and selling at Rs 114.16 and 114.66.
On January 17, the rupee retained its overnight level against the dollar for buying at 90.60, it, however, picked up 10 paisa for selling at 90.80. The rupee slipped and shed three paisa for buying and selling at Rs 114.19 and 114.69.
On January 18, the rupee followed the same pattern in the open market as it rose versus the dollar, gaining 20 paisa for buying and selling at 90.40 and 90.60. The rupee, however, fell sharply against the euro, losing Rs 1.79 for buying and selling at Rs 115.98 and Rs 116.48.
On January 19, the rupee extended its rise versus the dollar, gaining 10 paisa for buying and selling at 90.30 and 90.50. The rupee, however, depreciated in terms of the euro, falling 52 paisa for buying and selling at Rs 116.50 and Rs 117.00.
On January 20, the rupee stayed put in terms of the greenback for buying and selling at 90.30 and 90.50. The rupee, however, gained 33 paisa against the euro for buying and selling at Rs 116.17 and Rs 116.67.
On January 21, the rupee gave up firmness versus the dollar, losing 10 paisa for buying and selling at 90.40 and 90.60. The rupee followed the same pattern as fell also against the euro after losing 18 paisa for buying and selling at Rs 116.35 and Rs 116.85.
WORLD VALUE OF DOLLAR VERSUS MAJOR CURRENCIES: In the first Asian trade euro hit a fresh 11-year low versus yen and was stuck near a 17-month low against dollar after Standard & Poor's mass downgrade of euro zone countries late last week.
News of the downgrade came as negotiations between Greece and private creditors on a debt swap deal broke down, raising the risk of a messy Greek default. Markets are also worried the euro zone's bailout fund, EFSF, might lose its AAA rating with S&P as well.
The euro fell 0.4 percent against yen to 97.14 yen, and hit a fresh 11-year low of 97.04 yen at one point on trading platform EBS, with traders citing euro selling by Japanese exporters.
Inter bank buy/sell rates for taka against dollar on Monday : 83.75-84.00 (previous 83.60-83.75) Call Money Rates: 12.75-20.00 percent (previous 12.75-20.00 percent).
China's yuan closed slightly lower against dollar in line with the central bank's weaker mid-point fixing, and the currency is expected to move mainly in a virtual peg of 6.30 to 6.40 to the dollar in coming weeks.
The dollar was available versus the Indian rupee at Rs 51.64 and the greenback was at 3.1455 in terms of the Malaysian ringgit, Reuters adds.
In the second Asian trade, the euro rose on short-covering as risky assets drew broad support from data showing China's economic growth slowed less than expected in the fourth quarter. The euro rose 0.5 percent to $1.2729, its gains accelerated by stop-loss buying and pulling away from a 17-month low of $1.2624 hit last week on trading platform EBS. The single currency also climbed 0.4 percent against the yen to 97.62 yen, staying above an 11-year low of 97.04 yen struck on Monday.
Inter bank buy/sell rates for the taka against the dollar on Tuesday. 83.75-84.05 (previous 83.75-84.00). Call Money Rates: 20.00 percent (previous 12.75-20.00 percent). China's yuan traded slightly stronger on Tuesday but will likely hold steady between 6.30 and 6.35 against the dollar in the weeks leading up to Vice Premier Xi Jinping's visit to the United States, traders and analysts say.
The dollar was trading versus the Indian rupee at Rs 51.06 and it was at 3.1280 versus the Malaysian ringgit.
OPEN MARKET RATES: The rupee posed sharp gain of 60 paisa in terms of dollar for buying and selling at 90.60 and 90.90, they said.
While the rupee extended its overnight gain in relation to euro, rising Rs 1.17 for buying and selling at Rs 114.16 and 114.66, they said.
In the third Asian trade, the euro struggled to maintain gains, as short-covering after recent lows was tempered by caution ahead of Greek debt talks and a Portuguese bond auction later in the session.
The single currency rose 0.2 percent to $1.2775, pulling well away from a 17-month low around $1.2624 set on Friday, but easing from a session high of $1.2787.
The dollar was trading versus the Indian rupee at Rs 50.65, the greenback was at 3.1183 in relation to the Malaysian ringgit and the dollar was available at 6.3142 versus the Chinese yuan, adds Reuters.
In the fourth Asian trade, the euro pushed higher but failed to crack resistance as investors remained wary due to European debt auctions later in the session, while downbeat Australian jobs data rained on the Aussie's parade.
The euro pushed against resistance at $1.2880 before falling back to $1.2854, though it remained far off Friday's 17-month low of $1.2624 on the EBS trading platform.
In the final Asian trade, the euro held steady against the dollar and yen after rising in New York on hopes for progress in the European debt crisis.
The single currency bought $1.2962 and 99.91 yen in Tokyo afternoon trade, compared with $1.2961 and 99.97 late Thursday in New York, where it had risen on successful debt auctions by France and Spain.
At the week-end, the euro fell from an early two-week high against the US dollar as investors grew wary about the outcome of Greek debt negotiations ahead of the weekend despite growing expectations of a deal.
But so far this week, the euro has risen more than 2 percent, putting it on track for the biggest weekly advance since mid-October after Thursday's solid bond auctions in Spain and France whetted investors' risk appetite, Reuters adds.