The rupee last week, ending on September 2, 2006, managed to limit its losses versus dollar in the presence of hectic demand for US currency, money experts said.
In the interbank market, the rupee shed 12 paisa in terms of dollar for buying and selling at Rs 60.48 and Rs 60.51, respectively, following the same trend, losing three paisa in open market for buying and selling at Rs 60.40 and Rs 60.45, they said. It also shed 11 paisa versus euro for buying and selling at Rs 77.20 and Rs 77.30, respectively, they added.
Money market experts said that lack of balance between imports and exports caused the ballooning of trade deficit, thereby the rupee fell on rising demand for dollars. They said that heavy pressure due to buying of dollars caused erosion in rupee value and it seemed that this trend might continue for some more time.
Thanks to continuing remittances and foreign investment in the country, the rupee losses remained manageable in easing the supply of dollars, they observed.
According to the Federal Bureau of Statistic (FBS), the import bill touched 2.460 billion dollars in July 2006, against 1.996 billion in the same month of last year, indicating an increase of 23.25 percent.
Despite measures taken by the government, the exports of textile items were on the decline as, according to FBS figures, textile products exports dropped by 7.80 percent to 784.273 million dollars from 850.614 million dollars of the same period of last year.
OPEN MARKET RATES: On Monday, the rupee gained 7 paisa versus dollar for buying and selling at Rs 60.38 and Rs 60.43, respectively, but versus euro, it lost 39 paisa for buying and selling at Rs 77.09 and Rs 77.19, respectively, dealers said.
On Tuesday, the rupee maintained its overnight levels versus dollar for buying and selling at Rs 60.38 and Rs 60.43, while it shed 8 paisa against euro for buying and selling at Rs 77.17 and Rs 77.27, they added.
On Wednesday, the rupee again maintained the overnight levels versus dollar for buying and selling, while it shed 2 paisa in terms of euro for buying and selling at Rs 77.19 and Rs 77.29, respectively, they said.
On Thursday, the rupee recovered 3 paisa versus dollar for buying and selling at Rs 60.35 and Rs 60.40, but lost 15 paisa versus euro at Rs 77.34 and Rs 77.44, respectively, dealers said.
On Friday, trading activity was paralysed as a result of strike. On Saturday, the rupee lost 5 paisa versus dollar for buying and selling at Rs 60.40 and Rs 60.45, but gained 14 paisa versus euro for buying and selling at Rs 77.20 and Rs 77.30, they said.
GLOBAL TREND: Euro appreciated versus major currencies, mainly yen as the Bank of Japan (BoJ) said that it might take some time in raising the interest rate. However, on Tuesday, the dollar managed to recover versus leading currencies ahead of Federal Reserve meeting.
In the middle of the week, the euro struck an all-time high against yen on mounting expectations that the Bank of Japan might raise rates very slowly. In the closing sessions of the week, the dollar drifted lower following disappointing economic data.
INTERBANK RATES: On August 28, the rupee held its levels against dollar for buying and selling at Rs 60.35 and Rs 60.37, dealers said. On August 29, the rupee shed 2 paisa against dollar for buying at Rs 60.37 and one paisa for selling at Rs 60.38 due to strong demand for the US currency.
On August 30, the rupee lost 2 paisa against dollar for buying and selling at 60.39 and 60.41. On August 31, the rupee shed two paisa versus dollar for buying and selling to Rs 60.41 and Rs 60.42.
On September 1, the rupee lost 5 paisa versus dollar for buying at Rs 60.46 and 6 paisa for selling at Rs 60.48.
On September 2, the rupee shed 3 paisa for buying and selling at 60.48 and 60.51, respectively. The rupee breached the barrier of 60.50 as demand by corporate sector for dollars was up to meet payment requirements, dealers said.
Comments
Comments are closed.