The rupee failed to pull out of the losing spell against both dollar and euro during the first week of the new year, ended on January 5, 2008. In the interbank market, the rupee lost 30 paisa against dollar for buying and selling at 62.25 and 62.28.
It followed same print in open market, losing 55 paisa to dollar for buying and selling at 61.70 and 61.80, and losing 70 paisa to euro, crossing the barrier of Rs 90, at Rs 90.35 and Rs 90.40 for buying and selling, dealers said.
Currency experts said that payment for oil and outflows from the stock market pushed the rupee sharply lower.
Importers were buying dollar for payments to the foreign companies and most of them were trying to purchase more just to keep themselves from the future losses, they added.
INTER-BANK MARKET RATE: On Monday, the rupee hits the six-year low level against dollar at 61.95 and 62.00, currency experts said. On Tuesday, the rupee continued its slide against dollar, dealers said.
On Wednesday, the rupee gained 12 paisa in relation to dollar for buying at 61.83 and 15 paisa for selling at 61.85, they said.
On Thursday, the rupee gave up its overnight gains due to rising demand for the greenback, dropping nine paisa for buying and selling at 61.92 and 61.94, they said.
The rupee again touched the six-year low level within a short span of time against the dollar in the interbank market on Friday for buying and selling at 62.20 and 62.25, dealers said.
On Saturday, the rupee shed five paisa against dollar for buying and selling at 62.25 and 62.28, they said.
DOLLAR AGAINST WORLD CURRENCEIS: In the first session of the week, the dollar slipped to fresh two-week lows as talk of more US interest rate cuts enhanced the euro's yield advantage, while the yen benefited from a reluctance to hold risky positions over the holidays.
In thin Asian trading, euro buying was ay $1.4736, compared to $1.4714 late in New York on Friday and just off a two-week high of $1.4747. In the world, foreign exchanges were closed for the New Year holiday, they said.
In the Asian market, the dollar was mixed in Asian trading Wednesday amid speculation of another move by the Federal Reserve to cut interest rates to bolster the sluggish US economy, dealers said.
In morning trading, the dollar was higher at 111.73 yen from 111.70 yen in late New York trading hours Monday. The euro rose to 1.4604 dollars from 1.4585 dollars.
During the forth session of the week, the dollar fell against the yen in Asian trading on heightened concerns the US economy was headed for a sharp slowdown, possibly even a recession, dealers said.
In morning Singapore trading, the dollar was at 109.365 yen from 109.59 in late New York trades Wednesday. Financial markets in Japan are closed for the week and will reopen Friday.
Against the euro, the dollar rebounded partially from overnight losses in New York trading with the European unit changing hands at 1.4705 dollars against 1.4721 dollars.
At the weekend, the dollar dropped after a December report showing the weakest jobs growth since August 2003 fuelled fears of a recession and increased the likelihood of an aggressive rate cut by the Federal Reserve this month.
OPEN MARKET RATES: On December 31, the rupee lost 15 paisa against dollar for buying and selling at Rs 61.15 and Rs 61.25, dealers said.
The rupee fell sharply against the euro, falling Rs 1.70 for buying and selling at Rs 89.65 and Rs 89.75, they said.
On January 1, the rupee lost 15 paisa in relation to the US currency for buying and selling at 61.30 and 61.40. The rupee, however, gained versus euro for buying and selling at Rs 89.00 and Rs 89.10, dealers said.
On January 2, the rupee failed to maintain its firmness, giving up five paisa against the dollar for buying at 61.35 and it also shed 10 paisa for selling at 60.50, they said.
The rupee also lost 40 paisa against the euro for buying and selling at 89.40 and 89.50, they added. On January 3, the rupee shed five paisa against the dollar for buying at 61.40 while it maintained its overnight level for selling at 60.50, dealers said.
The rupee lost 40 paisa against the euro for buying and at Rs 89.80 and it was down by 49 paisa for selling at 89.99, they said. On January 4, the rupee was down by 10 paisa against the dollar for buying and selling at 61.50 and 61.60, dealers said.
The rupee did not show any change against the euro for buying and selling at Rs 89.80 and 89.90, they added. On January 5, the rupee extended its overnight losses against the dollar, losing 20 paisa for buying and selling at 61.70 and 61.80, they said.
The rupee touched the new low against the euro, falling 55 paisa for buying and selling at Rs 90.35 and Rs 90.40, they added.
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