Firm trend was seen in the currency market as the rupee retained its present levels against the dollar during the week, ended January 27, 2007.
In the open market, the rupee moved slightly in relation to the dollar for buying and selling at 60.85 and 60.95 and it also fluctuated marginally against the euro for buying and selling at 78.39 and 78.49, respectively, money changers said.
The rupee showed no any big changes against the dollar in the interbank market for buying and selling at 60.73 and 60.75 respectively, they added.
Currency analysts said the rupee managed to hold its firmness against the dollar owing to the smooth supply of the US currency, as it was available easily as a result of exporters' selling, they said.
The exporters preferring to sell dollars after observing not any big fluctuations in the rupee's value against the US currency, they said.
In the meantime, rising trend in remittances and the increase in the foreign investment was also another factor behind the rupee's steady trend against the greenback, they said.
It came under observation that the rupee fell modestly during the week as banks increased dollar buying to meet the clients' demand, currency experts said.
According to the weekly statement by the State Bank of Pakistan (SBP), the foreign exchange reserves crossed $ 12,952.8 million mark on January 20, 2007. The forex market will remain closed on Monday and Tuesday on account of Muharram-ul-Haram, they said.
DOLLAR'S PERFORMANCE IN WORLD MARKETS: At the opening sessions, the dollar was up against the yen as the Japanese currency suffered from the Bank of Japan's decision to hold interest rates steady last week.
The yen took a beating after the Bank of Japan (BoJ) left rates at just 0.25 percent last Thursday, raising questions about whether the central bank had bowed to government pressure against a move after many had expected a rate rise just days before.
On Tuesday, the yen held near a four-year low versus the dollar as investors shunned the low-yielding currency after the Bank of Japan kept rates on hold last week.
In the middle sessions of the week, the Japanese currency rallied against other major currencies, dealers said.
Some currency viewers observed that the market players rushed to cover short positions built up against the Japanese currency on doubts about whether the Bank of Japan will increase interest rates next month.
On Thursday, the yen rebounded against the dollar and other major currencies sources said, adding the previous day the European officials want to complain about the Japanese currency's weakness at next month's Group of Seven (G-7) meeting.
At the final session of the week, the yen could not retain its gains, slipping across the board, falling towards a four-year trough against the dollar after soft consumer price figures.
Data showed core consumer prices rose just 0.1 percent in December from a year earlier, suggesting Japan is struggling to shake off a decade of deflation and adding to speculation that the BoJ may keep rates at 0.25 percent at its February meeting.
INTER-BANK MARKET RATES: On Monday, the rupee moved up with slight gain of one paisa in relation to the dollar for buying at 60.74 and picked two paisa for selling at 60.76.
On Tuesday, it drifted lower in the interbank market, shedding three paisa against the dollar for buying at 60.77 and dropping two paisa for selling at 60.78, they said.
On Wednesday, the rupee held its overnight levels against the greenback, for buying and selling at 60.77 and 60.78 respectively, dealers said.
On Thursday, the rupee did not show any change against the dollar for buying and selling at 60.77 and 60.78, respectively. On Friday, it picked up five paisa against the dollar for buying at 60.72 and gaining four paisa for selling at 60.74.
Good supply of dollars pushed the rupee value up and the rupee may move both ways in the coming days, they noted.
On Saturday, the rupee managed to retain its levels against the dollar, keeping its present levels for buying and selling at 60.73 and 60.75, respectively.
OPEN MARKET RATES: On January 22, the rupee moved down and lost two paisa against the dollar for buying and selling at 60.82 and 60.90 respectively, they said.
The rupee also lost 18 paisa against the euro for buying and selling at 78.39 and 78.55 respectively, dealers said.
On January 23, the rupee continued its weakness in relation to the dollar, losing three paisa for buying at 60.85 and slipping five paisa for selling at 60.95, they said.
The rupee, however, picked up 42 paisa against the euro for buying and selling at Rs 78.40 and Rs 78.50, dealers said.
On January 24, the rupee shrugged off its overnight vulnerability in terms of the dollar, gaining three paisa for buying and selling at 60.82 and 60.92 respectively, they said.
The rupee, however, lost 32 paisa against the euro for buying and selling at 78.82 and 78.92 respectively, dealers said.
On January 25, the rupee managed to retain its firmness, holding its present level versus the dollar for buying and selling at 60.82 and 60.90 respectively, they said.
The rupee, however, picked up 30 paisa against the euro for buying and selling at 78.52 and 78.62 respectively dealers said.
On January 26, the rupee moved little against the dollar for buying and selling at 60.83 and 60.93 respectively, they said. While, the rupee maintained its surge versus the euro, gaining modestly for buying and selling at 78.27 and 78.37 respectively, dealers said.
On January 27, the rupee moved with slight fall of two paisa against the dollar for buying and selling at 60.85 and 60.95, respectively, they said.
The rupee followed the same pattern and lost 12 paisa against the euro for buying and selling at 78.39 and 78.49, respectively.
Comments
Comments are closed.