The rupee underwent modest fall versus dollar in both open and interbank markets last week ended on November 11. The feature of the week was handsome recovery of euro on dollar's weakness, money experts said.
The dollar started showing vulnerability following the negative data and announcement by China that it had a clear plan to diversify its foreign exchange reserves.
In the interbank market, the rupee shed 4 paisa in relation to dollar for buying at Rs 60.68 and 5 paisa for selling at Rs 60.69, while in the open market, it gained 3 paisa for buying at Rs 60.65, and shed 5 paisa for selling at Rs 60.75.
The rupee dropped sharply by 82 paisa for buying at Rs 77.50 and 97 paisa for selling at Rs 77.60, dealers said.
Unusual rush of importers for dollars lifted the greenback but when supplies improved the rupee shrugged off most its weakness, they said.
Easy supply of dollars in the shape to foreign investments or remittances enabled the rupee to come out of the weak spells. Some experts attributed the rise to rising interest in the housing business by overseas Pakistanis. They said that if foreign investment improved in the country, the rupee would definitely gain strength.
According to the State Bank of Pakistan weekly statement, the country's foreign exchange reserves rose to 12,516.7 million dollars.
INTER-BANK RATES: On Monday, the rupee lost 4 paisa versus dollar for buying and selling at Rs 60.68 and Rs 60.69, respectively.
On Tuesday, the rupee shed one paisa versus dollar for buying at Rs 60.69 and two paisa for selling at Rs 60.71.
On Wednesday, the rupee shed two paisa versus dollar for buying at Rs 60.71 and one paisa for selling at Rs 60.72.
Thursday being a holiday on account of Iqbal Day, the rupee on Friday shed one paisa versus dollar for buying and selling at Rs 60.72 and Rs 60.74, respectively.
On Saturday, the rupee maintained a firm outlook, holding its buying and selling rates at Rs 60.72 and Rs 60.74, respectively.
OVERSEAS OUTLOOK FOR DOLLAR: On Monday, the dollar remained against major currencies.
In the middle of the week, in European markets the dollar neared a six-week low against euro as investors left US election results firmly behind them to focus on US trade data later in the day.
The euro was also well supported versus yen as speeches due from European Central Bank policymakers shed light on chances for further interest rate rise this year and next from the current 3.25 percent.
In NY foreign exchange, the dollar tumbled to a two-month low against euro after a soft consumer sentiment survey and an announcement by Chinese central bank governor Zhou Xiaochuan that China was "considering lots of instruments" in diversifying.
At the weekend, the dollar failed to show any improvement against world currencies following concerns that China plans to diversify its estimated $1 trillion foreign exchange reserves.
OPEN MARKET RATES: On November 6, the rupee shed 8 paisa versus dollar for buying at Rs 60.68 and 2 paisa for selling at Rs 60.72, dealers said. It, however, gained 8 paisa versus euro for buying at Rs 76.63 and 12 paisa for selling at Rs 76.68, they said.
On November 7, the rupee held overnight levels versus dollar for buying and selling at Rs 60.67 and Rs 60.72, respectively. However, versus euro, it lost 42 paisa for buying at Rs 77.05 and 47 paisa for selling at Rs 77.15.
On November 8, the rupee held its overnight levels versus dollar for buying and selling at 60.67 and 60.72, respectively. It also managed to keep its levels for buying and selling at Rs 77.05 and Rs 77.15, respectively.
On November 10, the rupee picked up 2 paisa against dollar for buying and selling at 60.65 and 60.70, respectively, dealers said. The rupee gained 5 paisa versus euro for buying and selling at Rs 77.00 and Rs 77.10, respectively.
On November 11, the rupee held its overnight level against dollar for buying at Rs 60.65 but shed 5 paisa for selling at Rs 60.75, dealers said. The rupee fell sharply by 50 paisa versus euro for buying and selling at Rs 77.50 and Rs 77.60, respectively, they said.
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