Slight fall was seen in the currency market as the rupee failed to retain its firmness against the dollar, while it lost sharply in relation to the euro during the week ended September 30.
In the interbank market, the rupee lost 10 paisa against the dollar for buying and selling at 60.70 and 60.72 respectively, experts said, adding the rupee shed two paisa versus the dollar for buying and selling at 60.65 and 60.70.
Declining trend in the share market following the political chaos in the country, created shortage of the dollar in the market, but in the coming days, the rupee may move up versus the dollar, they viewed.
Feature of the week was the rupee's sharp fall against the euro as it hit the new high in global markets, currency analysts said, adding the other major thing was the importers demand for dollars at the end of first quarter.
Usually, inflows of dollars increase during Ramazan as overseas Pakistanis send dollars for the celebration of Eidul Fitr, currency experts said.
In the meantime, it was noticed that higher payments washed out the oversupplies of dollars, they said, adding no match in imports and exports is widening the trade deficit. Huge gap between import and export is the big negative factor, which is not helping in narrowing the trade deficit, they said.
The foreign exchange reserves rose by 13 million dollars to a record 16.104 billion dollars, money experts said.
INTER-BANK RATES: On Monday, the rupee gained one paisa against the dollar for buying and selling at 60.60 and 60.61, dealers said.
On Tuesday, the rupee managed to hold its overnight levels against the dollar for buying and selling at 60.60 and 60.61, dealers said. On Wednesday, the rupee shed five paisa against the dollar for buying at 60.65 and it also fell by six paisa for selling at 60.67 during the day, they added.
On Thursday, the rupee lost 10 paisa against the dollar for buying and selling at 60.75 and 60.77, they said. On Friday, the rupee recovered six paisa against the dollar for buying and selling at 60.69 and 60.71, they added.
At the weekend, the rupee shed one paisa against the dollar for buying and selling at 60.70 and 60.72 respectively, they said.
On Saturday, the rupee failed to resist its firmness in the interbank market, shedding one paisa against the dollar for buying and selling at 60.70 and 60.71 respectively, dealers said.
WORLD CURRENCY SCENARIO: In the first session of the week, the dollar slipped against the euro in Asian trading on Monday as investors continue to fret over the state of the US economy, dealers said.
The investors worry the US Federal Reserve's robust half-point rate cut announced last week may not be sufficient to avert a sharp slowdown in the world's biggest economy, they added.
In the second session, the dollar hovered just above its record low against the euro as the market awaited fresh economic data for leads on prospects for further US interest rate cuts, dealers said.
They said the yen was largely unmoved by the Japanese ruling party's choice of moderate veteran Yasuo Fukuda as prime minister, a decision that had been widely expected.
In the third session, the euro struck another record high against the dollar in Asian trade on growing concerns that the world's largest economy is losing steam, they added.
They said that another batch of sluggish data had sparked renewed speculation about possible further US interest rate cuts.
The euro reached 1.4162 dollars in early Tokyo trade, the highest level since its introduction in January 1999. During the forth session, the euro reached a fresh record high against the dollar, as dealers anticipated the publication of US macroeconomic data.
The European single currency hit 1.4166 dollars, beating its previous record of 1.4162 that was set on Wednesday. In Asian final trading session, the dollar remained in a trough against the euro amid worries a slump in the US housing market could curtail growth and force the Federal Reserve to cut rates again, dealers said.
The euro firmed to 1.4159 dollars in Tokyo morning trade from 1.4150 late Thursday in New York, although it eased from a lifetime record high of 1.4189 dollars reached in intra-day trading overseas on Thursday. In the New York markets, the dollar fell to record lows against the euro and a basket of major currencies after economic data supported expectations that the Federal Reserve would cut interest rates again to shore up sluggish growth.
Further monetary easing, on top of a half a percentage point reduction in the federal funds rate last week to 4.75 percent, would further erode the appeal of dollar-denominated assets.
OPEN MARKET RATES: On September 24, the rupee followed the same suit and picked up two paisa against the dollar for buying and selling at 60.63 and 60.68 respectively, dealers said.
The rupee, however, maintained its slide against the euro, giving up six paisa for buying at 85.10 and it also shed five paisa for selling at 85.20,they said.
On September 25, the rupee did not move any side against the dollar for buying at 60.63 it, however, shed three paisa for selling at 60.68, dealers said.
The rupee, however, gave up its slide against the euro, picking up 14 paisa for buying at 84.96 and selling at 85.06,they said. On September 26, the rupee held its overnight level against the dollar for buying and selling at 60.63 and 60.68, dealers said.
While the rupee dropped by 49 paisa against the euro for buying and selling at 85.45 and 85.55 as the single European currency is flying high to see colours after breaking record during the week, dealers said.
On September 27, the rupee shed two paisa against the dollar for buying and selling at 60.65 and 60.70, they said. Versus the euro, the rupee managed to pick up five paisa for buying and selling at 85.40 and 85.50, they said.
On September 28, the rupee, however, failed to retain its firmness against the dollar, dropping five paisa for buying and selling at 60.70 and 60.75, dealers said.
The rupee, however, lost 20 paisa against the euro for buying and selling at 85.60 and 85.70, they added. On September 29, the single European currency picked up 46 paisa in relation to the rupee for buying and selling at 86.06 and 86.16, they said.
The rupee, however, managed to gain five paisa against the dollar for buying and selling at 60.65 and 60.70, dealers said.
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