The rupee managed to hold on to its current levels against dollar in the interbank market during the week ended on July 14, 2007. In the interbank market, the rupee rose by four paisa against dollar for buying and selling at 60.36 and 60.37, dealers said.
In the open market, the rupee picked up 10 paisa against dollar for buying and selling at 61.00 and 61.08, they said. The rupee, however, lost 89 paisa in relation to euro for buying and selling at Rs 83.49 and Rs 83.59, they added.
Currency analysts said that in the early sessions of the week, the rupee suffered modest losses against dollar in interbank market due to rising demand from the importers. But improved supply of dollars helped the rupee to retain its gains against the US currency, they added. In the open market, the rupee depicted weakness due to buying of dollars from interbank market.
INTERBANK RATES: On July 9 the rupee shed two paisa against dollar for buying and selling at 60.38 and 60.40.
On July 10, the rupee almost held its overnight levels for buying and selling at 60.39 and 60.40.
On July 11, the rupee again maintained its overnight levels in terms of the US currency. On July 12, the rupee picked up one paisa against dollar for buying and selling at 60.38 and 60.39. On July 13, the rupee gained one paisa against dollar for buying and selling at 60.37 and 60.38. On July 14, the rupee again recovered one paisa against dollar for buying and selling at 60.36 and 60.37.
WORLD SCENARIO: In the first session of the week, the euro hit a record high against yen and hovered within striking range of its strongest level versus the dollar as investors continued to flock to the currency on the belief that euro zone interest rates will continue to rise.
During the second session, the low-yielding yen halted its slide against major currencies and the New Zealand dollar weakened as investors pared back some of the bets built up in recent weeks on divergent interest rate expectations.
Surprisingly, weak New Zealand business confidence data and a backup in 10-year Japanese Government bond yields toward the two percent level ahead of the Bank of Japan's (BoJ) rate decision were the main drivers, analysts said.
In the third session, the dollar steadied after tumbling to a record low against the euro and stuck near a 26-year trough against sterling as investors feared that growing US subprime mortgage woes could spread to the wider economy.
In the forth session, the dollar rose against the yen in Asian trading as traders were heartened by Wall Street's recovery overnight, while the Bank of Japan left its key interest rate unchanged, as expected.
In the final session of the week, the euro surged to a record high against the yen in Asian trade on expectations that local interest rates will remain low for some time, encouraging Japanese to send savings overseas, dealers said.
The euro rose to 168.83 yen in Tokyo morning trade, off a high of 168.93 but up from 168.75 in New York late Thursday. In the NY markets, the dollar was flat against the euro, supported by a six-month high in US consumer sentiment, even though an unexpected fall in retail sales last month and troubles in credit markets loomed.
The dollar fell against a basket of six major currencies for the sixth consecutive day, suffering the second-largest weekly decline this year, because of fears the US subprime mortgage crisis could frighten foreign investors away from US credit markets.
OPEN MARKET RATES: On Monday, the rupee lost five paisa against dollar for buying at 61.10 and six paisa for selling at 61.18, dealers said. Against euro, the rupee held on its current levels at Rs 82.60 and Rs 82.70 for buying and selling, they said.
On Tuesday, the rupee picked up 10 paisa against dollar for buying at 61.00 and eight paisa for selling at 61.10, while it gained 15 paisa against euro for buying and selling at Rs 82.45 Rs 82.55, dealers said.
On Wednesday, the rupee gained 10 paisa Vs dollar for buying and selling at 60.90 and 61.00, and versus euro, it lost 59 paisa for buying and selling at Rs 83.06 and Rs 83.16, respectively.
On Thursday, the rupee lost five paisa against dollar for buying and selling at 60.95 and 61.05, and shed 14 paisa in relation to euro for buying and selling at Rs 83.20 and Rs 83.30, dealers said.
On Friday, the rupee shed five paisa against dollar for buying at 61.00 and three paisa for selling at 60.08, and lost 25 paisa against euro for buying and selling at Rs 83.45 and Rs 83.55, they said.
On Saturday, the rupee maintained its overnight levels against dollar for buying and selling at 61.00 and 60.08, respectively, while it shed four paisa against euro for buying and selling at Rs 83.49 and Rs 83.59, respectively, dealers said.
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