The rupee moved both ways against dollar on the currency market in the first week of the new fiscal year 2007-08 ended on July 8, 2007, money experts observed. In the interbank market, the rupee did not move to any side against dollar for buying at 60.36 while it shed two paisa for selling at 60.38, dealers said.
However, the rupee lost 20 paisa against dollar in the open market for buying and selling at 61.05 and 61.12 due to good demand for the US currency, while it lost 85 paisa in terms of euro for buying and selling at Rs 82.60 and Rs 82.70, they said.
Some currency experts said that the rupee drifted lower most of the time against both euro and dollar. According to some experts, the rupee managed to hold on to its current level due to handsome arrival of foreign exchange reserves, touching a record 15.613 billion dollars in the week ending on June 30.
The State Bank of Pakistan (SBP) in its weekly report said that the foreign exchange reserves had grown up because of rising foreign investment inflows and higher remittances from Pakistanis abroad.
INTER-BANK MARKET: On Monday, banks were closed due to holiday on account of bank closing. On Tuesday, the rupee shed three paisa in terms of dollar for buying at 60.36 and two paisa for selling at 60.40.
On Wednesday, the rupee picked up one paisa against dollar for buying and selling at 60.38 and 60.39, respectively.
On Thursday, the rupee shed two paisa against dollar for buying at 60.40 and three paisa for selling at 60.42.
On Friday, the rupee picked up four paisa against dollar for buying and selling at 60.36 and 60.38 due to improved supply of dollars, dealers said.
O Saturday, the rupee held on to its overnight levels against dollar for buying and selling, dealers said.
WORLD VALUE OF DOLLAR: In the first session of the week, the dollar moved in a narrow band against the leading currencies.
During the second session of the week, the dollar matched a 26-year low versus sterling and hung near a record low against euro as investors were confident that US rates would remain steady flocked to currencies whose rates are expected to continue climbing.
In the third session, the dollar was held near a 26-year low against pound and a two-month trough versus euro with trade quiet around US Independence Day holiday as investors awaited key central bank verdicts later in the week.
In the fourth session, there was no change in dollar. In the fifth session, in New York, the dollar rose for a third straight session after data showed the US economy generated more jobs than expected in June, easing concerns that the Federal Reserve may cut interest rates this year.
The government's non-farm payrolls report, the most closely watched barometer of the health of the US labour market, showed that 132,000 jobs were created in June, beating the consensus forecast of 120,000 in a Reuters poll. The euro was down 0.1 percent at $1.3580. The dollar was up 0.4 percent at 123.48 yen.
OPEN MARKET RATES: On July 2, the rupee commenced the week at 60.85 and 60.95 per dollar for buying and selling, respectively, dealers said. The euro was available at Rs 81.75 and Rs 81.85 for buying and selling, respectively, dealers said.
On July 3, the rupee dropped five paisa against dollar for buying at 60.90 and four paisa for selling at 60.99, they said. The rupee also lost 58 paisa for buying and selling against euro at Rs 82.33 and Rs 82.43, respectively.
On July 4, the rupee shed six paisa in relation to dollar for buying and selling at 60.95 and 61.05, respectively and shed nine paisa in terms of euro for buying and selling at Rs 82.42 and Rs 82.52, dealers said.
On July 5, the rupee lost 10 paisa against dollar for buying and selling at 61.05 and 61.15 due to strong demand by importers, money experts said.
The rupee also shed four paisa against euro for buying and selling at Rs 82.46 and Rs 82.56, they said. On July 6, the rupee shed three paisa against dollar for buying at 61.08 while it did not accept any change for selling at 61.15, they said. It, however, gained 14 paisa against euro for buying and selling at Rs 82.32 and Rs 82.42, they added.
On July 7, the rupee gained three paisa against dollar for buying and selling at 61.05 and 61.12, but lost 28 paia versus euro for buying and selling at Rs 82.60 and Rs 82.70, they said.
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