The rupee hit the record low in relation to dollar as the national currency touched new low at 93.00 in open market and hit record low at 92.00 in the interbank dealings during the week, ended on May 26, 2012.
In the interbank dealings, the rupee shed 50 paisa in terms of dollar, breaching record high for buying and selling at 91.80 and 91.85.
On the open market, in sympathy with the interbank, the rupee also lost Re.1 for buying at 93.10 and fell sharply by 1.10 for selling at 93.40.
Versus euro the rupee, however, posted fresh gain of 60 paisa for buying and selling at Rs 116.80 and Rs 117.80.
The rupee came under pressure against dollar due to payments. At one point, the rupee hit all-time low at 94 versus dollar in the open market as a result of the International Monetary Fund (IMF) payment. After the payment to the IMF, the Pak rupee started recovering against dollar and may maintain its recovery against the greenback in the coming days. But one thing is very important to watch and that is how the rupee move next week.
In the meantime, the rupee is likely to move in the range of 91.50-91.60 in days to come. Other major payments are due in the month of June and then how the rupee will perform versus dollar, would be keenly watched. This is final the quarter of current fiscal year 2011-12.,
Since the current fiscal year 2011-12 started, the rupee has dropped by over seven percent versus dollar, slide of the rupee could be beneficial for the exporters but under the circumstances it was very difficult for the economy because of dependence on the imports so much, earning major part of the foreign exchange comes from the textile sector, but, the intense risk aversion from the euro zone has severely pressured the world, including Pakistan.
It is interesting to note that both the neighbours (Indian-Pakistan), most of the time do not agree on many issues, but now it appears that they are sharing the tough time after facing same kind of problem, the Indian rupee crossed Rs 57 versus dollar and is likely to hit new low at 58.
INTER-BANK MARKET RATES: On Monday, the rupee lost 37 paisa in relation to dollar for buying at 91.30 and it also dropped by 38 paisa for selling at 91.35.
On Tuesday, the rupee continued its fall against dollar, losing 24 paisa for buying at 91.54 and dropped by 23 paisa for selling at 91.58.
On Wednesday the rupee extended its slide against dollar, losing 46 paisa for buying at 92 and shed 47 paisa for selling at 92.05.
On Thursday, the rupee continued its fall versus dollar, shedding 10 paisa for buying at 92.10 and shed 15 paisa for selling at 92.20.
On Friday the rupee shrugged off weakness, gaining 30 paisa against dollar, for buying at 91.80 and rose by 35 paisa for selling at 91.85.
OPEN MARKET RATES: On May 21, the rupee shed 10 paisa against dollar for buying and selling at 92.10 and 92.30. The rupee, however, gained 10 paisa versus euro for buying and selling at Rs 117.40 and Rs 118.40.
On May 22 the rupee was down by 35 paisa against dollar for buying and selling at 92.45 and 92.65. The rupee adopted the same pattern by shedding 10 paisa versus euro for buying and selling at Rs 117.50 and Rs 118.50.
On May 23 the rupee failed to minimise its fall against dollar, sliding more 75 paisa for buying and selling at 93.20 and 93.40. The rupee also shed 30 paisa versus euro for buying and selling at Rs 117.80 and Rs 118.80.
On May 24 the rupee dropped by 10 paisa against dollar for buying at 93.30 and fell sharply by 70 paisa for selling at 93.70. The rupee, however, gained 30 paisa versus euro for buying and selling at Rs 117.50 and Rs 118.50.
On May 25 the rupee posted modest gain in relation to dollar for buying and selling at 93.00 and 93.40. The rupee also gained 70 paisa versus euro for buying and selling at Rs 116.80 and Rs 117.80.
On May 26 the rupee shed 10 paisa versus dollar for buying at 93.10, while it managed to hold the overnight level for selling at 93.40. The rupee did not show any change against euro for buying and selling at Rs 116.80 and Rs 117.80.
OVERSEAS OUTLOOK FOR DOLLAR: According to the Reuters, in the first Asian trade euro extended its rebound from last week's four-month low but investors remained concerned over financial turmoil in Greece and Spain, drawing little comfort from a broad G8 pledge to take steps to fight the euro zone's debt crisis.
The common currency rose on short-covering after speculators piled up a record amount of bets against it, according to data from a US financial watchdog released late last week.
Inter bank buy/sell rates for taka against dollar on Monday: 81.84-81.85 (previous 81.84-81.85) Call Money Rates: 9.00-15.00 percent (previous 9.00-15.00 percent).
The yuan edged higher against dollar on Monday on short-covering triggered by the euro's gains, with a stronger midpoint set by the central bank also boosting sentiment, traders said.
According to the Reuters, in the second Asian trade euro's rebound from four-month lows stalled, failing to break above technical resistance, though traders said selling could be limited at least until an informal meeting of European leaders this week.
The Indian rupee hit a record low to dollar for the fifth straight session on Tuesday, weighed down by large dollar demand from oil firms and weak global risk sentiment, especially after Fitch downgraded Japan's ratings.
The falls came even after the Reserve Bank of India announced on Monday measures to target arbitrage and speculation in futures and options markets, with traders saying this market segment was too small to have a big impact.
The rupee fell to an all-time low of 55.47 per dollar, before closing at 55.39/40, as per SBI closing rates, compared to its Monday close of 55.03/04.
The RBI has announced a string of measures to curb the rupee's falls, none of which has so far succeeded. It has also intervened aggressively earlier this month though it has been largely absent since Thursday.
"There was huge demand from oil firms. Later it turned into complete panic with the Japan downgrade, euro and pound falling and equities also turning negative," said Vikas Chittiprolu, a senior foreign exchange trader with state-run Andhra Bank.
Inter bank buy/sell rates for taka against dollar on Tuesday: 81.85-81.88 (previous 81.84-81.85) Call Money Rates: 9.50-15.00 percent (previous 9.00-15.00 percent).
The yuan closed slightly higher against dollar on Tuesday as a firm euro led banks and their clients to cover some of their yuan short positions, traders said. Spot yuan closed at 6.3231 per dollar, up slightly from 6.3279 at Monday's close. The dollar was trading against the Malaysian ringgit at 3.1150.
In the third Asian trade euro slumped one percent against the US dollar ahead of an informal meeting of European leaders, on growing fears of a Greek exit from the euro zone.
The Indian rupee slumped to a record low against dollar, ratcheting up pressure on policymakers to restore confidence in the currency at a time when appetite for risky assets is ebbing around the world.
The rupee fell beyond the symbolically significant level of 56 to dollar, and traders said it could fall further to 57. The currency has already dropped more than 13 percent from its 2012 peak in February. Citing technical chart analysis, Standard Chartered said in a report on Tuesday the rupee could fall to as low as 58.62. Until, now the rupee has fallen more than five percent this year against dollar to make it the worst-performing Asian currency monitored daily by Reuters. It has dropped more than 13 percent from its 2012 high reached in February.
Inter bank buy/sell rates for taka against dollar on Wednesday: 81.87-81.88 (previous 81.85-81.88) Call Money Rates: 9.50-15.00 percent (previous 9.00-15.00 percent).
The yuan closed lower against dollar on Wednesday, breaking below its established trading zone from this year, succumbing to pressure to depreciate as Europe's deepening debt crisis pushed the dollar index to its highest level since September 2010. Spot yuan closed at 6.3345 per dollar, compared with 6.3231 at Tuesday's close and the daily midpoint of 6.3208.
According to the Reuters in the fourth Asian trade euro hovered just above its 22-month low against the dollar and remained vulnerable to further declines as the prospect of a Greek exit from the euro zone kept investors on tenterhooks.
The euro eased 0.1 percent to 1.2574 dollars. It fell to about 1.2545 dollars the previous day, its lowest level since July 2010. That level should provide initial support, followed by 1.2500 dollars.
The yuan hit its highest level against euro in a decade in late trade on Thursday, but it fell to the lowest value against dollar this year as investors sought a safe haven from the euro zone's intensifying debt and political crisis. The yuan trimmed gains slightly to close at 7.9635 against euro.
Inter bank buy/sell rates for taka against dollar on Thursday: 81.88-81.90 (previous 81.87-81.88) Call Money Rates: 9.50-15.00 percent (previous 9.50-15.00 percent).
The Indian rupee posted its first gain against dollar in four sessions on Thursday, recovering from a new record low earlier in the session, after the central bank governor did not rule out selling dollars directly to oil importers.
The rupee closed at 55.65/66 per dollar after hitting a record low of 56.40 hit earlier in the session. The pair had closed at 55.9950/56.0050 on Wednesday.
According to the Reuters in the final Asian trade euro wallowed at two-year lows against dollar and was poised to end the week two percent weaker, weighed down by weak German manufacturing data and worries about a messy Greek exit from the euro zone.
The Indian rupee strengthened for a second session on Friday, continuing its recovery from record lows hit this week, after the central bank stepped in to defend the currency and exporters and custodian banks were heavy sellers of dollars.
The unit still posted its eight consecutive weekly fall, having hit seven consecutive record lows since May 16. Its latest was on Thursday when it fell to as much as 56.40.
The intense risk aversion from the euro zone has severely pressured the currency, but falls have been magnified by concerns about India's fiscal and economic outlooks.
The yuan closed slightly higher against dollar, bouncing off its 2012 low, after some investors covered short positions towards the end of the session, taking cues from dollars' drop in European trade.
The currency traded in negative territory for most of the day and slumped to its low around mid-afternoon as the dollar index hit its highest level since September 2010, at 82.411, in Asian trade before European markets opened.
According to the Reuters at the weekend euro slumped to near two-year lows against dollar, rattled by fears of a possible Greek exit from the euro zone and the risk other debt-plagued countries could also leave the bloc.
A plea from Spain's wealthiest autonomous region, Catalonia, for help from the central government to refinance its debt this year was the latest news to hit euro, which was on track for its worst weekly showing in five months.
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