The rupee moved both ways versus dollar during last week ended on July 2, 2005, after the completion of the year-end payments, currency analysts said. In the inter-bank market, the rupee picked up 10 paisa versus dollar for buying and selling at Rs 59.65 and Rs 59.68 as buying pressure eased over the US currency at the end of 2004-05 fiscal year, they said.
The rupee moved steadily versus dollar in the open market, gaining 15 paisa for buying and selling at Rs 60.30 and Rs 60.35, dealers said. It posted fresh gain of Rs 1.40 paisa versus euro at Rs 71.40 and Rs 71.60.
According to some currency analysts, in the beginning of the week, the rupee failed to retain its firmness on increasing demand for dollars to clear the year-end payments.
They attributed the rise in dollars' demand to the flare up in the world oil prices, which turned the foreign bills higher. On the other hand, some dealers became active on higher demand for dollars and held dollars stock anticipating further rise in demand. This factor could be one of the reasons behind rupee's fall versus dollar, they observed.
They expected that if the oil prices continued to rise, the demand for dollars by the corporate sector might go further up and this can push the rupee down versus dollar in the coming days. The feature of the week was the euro's continued fall versus the rupee and seems that it might continue its weakness in the coming days, analysts said.
In the world markets, the dollar maintained a firm posture versus leading currencies, dealers said. These days dollar has solid ground to gain versus yen and euro, they said.
The euro, which is under pressure for one month or so, remained under pressure and seemingly it looks that the single European currency would show its weakness in near term, they said.
INTER-BANK RATES: 0n Monday, the rupee extended its fall versus dollar, losing five paisa on the buying side at Rs 59.75 and three paisa on the selling counter at Rs 59.78, dealers said.
On Tuesday, the rupee did not show major changes in the inter-bank market on Tuesday for buying and selling at Rs 59.75 and Rs 59.80, dealers said.
On Wednesday, the rupee gained sharply versus dollar for buying and selling at Rs 59.69 and Rs 59.70.
On Thursday, the new fiscal year (2005-06) commenced on a firm note as the rupee gained six paisa versus dollar for buying and selling at Rs 59.62 and Rs 59.64, marketmen said.
According to market sources, the rupee shrugged off most of its weakness as the demand for dollars declined, after clearance of most of the oil payments at the end of 2004-05.
They were expecting that the rupee might show further gain in the coming days after improvement in dollars' supply in the market.
On Friday, the rupee-dollar parity rates were inert due to bank closing.
On Saturday, the rupee dropped 4 paisa versus dollar for buying and selling at Rs 59.65 and Rs 59.68, respectively.
OPEN MARKET RATES: On June 27, the euro managed to continue its recovery versus rupee, gaining 15 paisa on the buying side at Rs 72.85 and picking up 30 paisa on the selling side at Rs 73.00, dealers said.
The rupee gained 2 paisa against dollar for buying and selling at Rs 60.40 and Rs 60.45, market sources said.
On June 28, falling trend was seen in the open market as the rupee shed 5 paisa versus the US currency for buying and selling at Rs 60.45 and Rs 60.50, dealers said.
Rising demand from the inter-bank market pushed the rate down in the open market, they said.
The rupee gained 40 paisa versus euro for buying and selling at Rs 72.40 and Rs 72.60 on drop in its value in the international markets, they added.
In the overseas markets, the dollar moved both ways versus major currencies, dealers said.
On June 29, the rupee maintained firm outlook showing no change for buying and selling. Versus the euro, the rupee gained 80 paisa for buying and selling at Rs 71.60 and Rs 71.80, dealers said.
On June 30, firm trend was seen in the rupee as it did not show any change for buying and selling at Rs 60.40 and Rs 60.45, dealer said.
After a long time, the rupee drifted lower, shedding 40 paisa versus euro for buying and selling at Rs 72.00 and Rs 72.20 in the process of trading, dealers said.
On July 1, the rupee did not show any change versus dollar for buying and selling at Rs 60.40 and Rs 60.45, they added. Versus the rupee, the euro shed 10 paisa for buying and selling at Rs 71.90 and Rs 72.10, they added.
On July 2, the rupee gained 15 paisa versus dollar for buying and selling at Rs 60.30 and Rs 60.35, respectively. The euro was quoted at 71.40 and Rs 71.60 for buying and selling, respectively.
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