The rupee drifted lower against the dollar during the week ended April 5, 2008. In the inter-bank market, the rupee lost 12 paisa against the dollar for buying and selling at 62.84 and 62.87, but it maintained firm posture in the open market at 63.30 and 63.40. The rupee, however, did not show any big change in terms of the euro for buying and selling at 99.45 and 99.55.
Currency analysts said the rupee was under pressure during the week and it seems it may move both ways in the days to come. The rupee is under pressure due to rising demand for dollars by the importers and it is most likely that it may not be able to show any sharp gain versus the US currency.
In the meantime, if the remittances depicted improvement in the coming months, the reserves will also take a boost from it and this will be a supportive factor for the rupee, too.
INTER-BANK MARKET: On March 31, the rupee shed four paisa versus the dollar for buying at 62.72 and three paisa for selling at 62.75, the dealers said. On April 1, the rupee drifted lower in terms of the dollar, losing three paisa for buying at 62.75 and five paisa for selling at 62.70, they said.
On April 2, the rupee drifted lower against the dollar, shedding three paisa for buying while it retained its overnight selling level at 62.80 in process of trading.
On April 3, the rupee drifted lower by two paisa in relation to the dollar for buying and selling at 62.80 and 62.82, the dealers said.
On April 4, the rupee lost six paisa in terms of the greenback for buying and selling at 62.86 and 62.88 in the inter-bank market.
On April 5, the rupee ended the week on a firm note, showing two paisa gain against the dollar for buying at 62.84 but shed one paisa for selling at 62.87.
WORLD VALUE OF DOLLAR: The greenback showed weakness most of the sessions following not very encouraging news on the economic sector. In the first session of the week, the yen weakened in Asian trade as markets braced for a key central bank survey expected to show a sharp drop in Japanese business confidence, dealers said.
The euro slipped to 1.5792 dollars from 1.5799, but gained to 157.45 yen from 156.68. Market participants were adjusting their positions on the last day of the Japanese fiscal year, while waiting nervously for the Bank of Japan's 'Tankan' survey of the health of the corporate sector due on Tuesday.
The dollar was at 99.64 yen in Tokyo afternoon trade, up from 99.16 in New York on Friday, but off earlier highs above the key 100 yen line.
During the second session, the euro fell against the dollar and the yen after European bank, UBS AG, said it wrote down an additional 19 billion dollars on assets, stoking worries that credit market turmoil will spread into the European financial sector.
The European bank said that the write-down would cause a net loss of 12 billion Swiss francs (12.03 billion dollars) in the first quarter and it would seek 15 billion francs in new capital through a rights issue of shares.
In the fourth Asian trading, the dollar edged higher against the euro and the yen on the eve of a key monthly US jobs report.
Traders showed a muted response to Federal Reserve Chairman Ben Bernanke's remarks to Congress where he acknowledged a possible US recession.
The dollar rose to 102.42 yen in Tokyo morning trade compared with 102.29 yen late Wednesday in New York. The euro slipped to 1.5655 dollars from 1.5687 and to 160.31 yen from 160.59.
In the New York trading, the dollar drifted lower after a report showed the US economy shed jobs for a third straight month, confirming fears that the country may already be in a recession.
Both the euro and the yen posted gains on the greenback after the government said US employers cut 80,000 jobs in March, more than expected and the biggest monthly fall in five years.
OPEN MARKET RATES: On Monday, the rupee did not show any change against the dollar for buying and selling at 63.15 and 63.25, respectively.
Meanwhile, the rupee managed to gain five paisa against the euro for buying and selling at 99.50 and 99.60, they said.
On Tuesday, the rupee failed to show any improvement against the dollar for shedding three paisa for buying and selling at 63.18 and 63.28 in process of trading, they said.
But at the same time, it was unmoved against the euro for buying and selling at 99.50 and 99.60, they said. On Wednesday, it lost 22 paisa against the dollar for buying and selling at 63.40 and 63.50.
The rupee, however, managed to gain 75 paisa in terms of the euro for buying and selling at 98.75 and 98.85, they said. The dollar's gains in the global markets pushed down the single European currency, they added.
On Thursday, it resisted further decline in terms of the dollar, gaining five paisa for buying and selling at 63.35 and 63.45, they said.
The rupee, however, gave up its overnight level in terms of the euro for buying and selling at 98.99 and 99.10, the dealers added.
On Friday, the rupee gained five paisa in relation to the dollar for buying and selling at 63.30 and 63.40 and the euro was available versus the rupee at Rs 98.45 and Rs 99.05.
At the weekend, the rupee maintained a firm posture against the dollar, holding its present levels for buying and selling at 63.30 and 63.40, they said.
While, the rupee shed its value in relation to the euro for buying and selling at 99.45 and 99.55, the dealers added.
Comments
Comments are closed.