The rupee managed to come out of the weak spell on the back some improvement in the supply of US currency during the week ended on August 15, 2009. On the interbank market, the rupee gained 33 paisa against dollar for buying and selling at 82.57 and 82.62.
The rupee, on the open market, followed the same trend and gained 35 paisa versus dollar for buying at 82.65 and 45 paisa for selling at 82.75. Against the euro, the rupee lost 45 paisa for buying and selling at Rs 116.35 and Rs 116.85.
The rupee took a boost versus US currency after improvement in inflows and it is unlikely that the rupee would be able to retain its present levels due to strong demand for dollars.
According to the State Bank of Pakistan (SBP), the country's foreign exchange reserves rose by 130 million dollars in the week ended on August 8 to 11.85 billion dollars from 11.72 billion dollars. In the meantime, the SBP chief Salim Raza admitted that in fact the reserves built on loan amid fears of a possible default.
INTER-BANK MARKET: On Monday, the rupee firmly held its weekend levels against dollar for buying and selling at 82.90 and 82.95.
On Tuesday, the rupee managed to recover 5 paisa against dollar for buying and selling at 82.85 and 82.90. On Wednesday, the rupee gained 7 paisa against dollar for buying and selling at 82.78 and 82.83. On Thursday, the rupee, gained 20 paisa versus dollar for buying and selling at 82.58 and 82.63.
On Friday, the market was closed due to Independence Day holiday. On Saturday, the rupee almost retained its last level for buying and selling at 82.57 and 82.62.
OVERSEAS MARKET OUTLOOK: In the first Asian trading, the dollar retained most of its gains against a basket of currencies but lost ground to the yen as Japanese exporters and short-term speculators took advantage of its jump the previous session on US jobs data.
The dollar rose 2 percent against the yen on Friday and gained more than 1 percent against the basket after the July US jobs report gave the clearest indication yet that the economy is turning around from a deep recession.
In the second session, the yen climbed across the board, gaining strongly against the Australian and New Zealand dollars as investors trimmed long positions in those currencies after Chinese data showed rapid expansion but not quite as rapid as forecast.
During third session, the yen rose against the dollar as Chinese shares tumbled and prompted investors to further liquidate yen short positions ahead of a policy statement from the US Federal Reserve later in the day.
Amid fourth session, the dollar slipped after the Federal Reserve painted a less gloomy outlook for the US economy but also said rates would remain low for a while, an assessment that led investors to return to commodity-linked currencies. The Fed said it would slow the pace at which it buys Treasuries by extending the duration, but not the size, of its $300 billion programme to buy long-term government securities.
At the week-end, in New York, the yen gained against the euro and the dollar after a report showed US consumer sentiment worsened in August, adding to concerns about a recovery for the world's largest economy and prompting a rise in risk aversion.
At the week-end, in New York, the yen gained against the euro and the dollar after a report showed US consumer sentiment worsened in August, adding to concerns about a recovery for the world's largest economy and prompting a rise in risk aversion.
OPEN MARKET RATE: On August 10, the rupee shed 20 paisa against dollar for buying at 83.00 and 30 paisa for selling at 83.20. The rupee lost 95 paisa versus euro for buying and selling at Rs 116.85 and Rs 117.35.
On August 11, the rupee retained its overnight level versus dollar for buying at 83.00 while it shed 10 paisa for selling at 83.10. The rupee gained 30 paisa against euro for buying at Rs 116.35 and 50 paisa for selling at Rs 116.85.
On August 12, the rupee gained 10 paisa in relation to dollar for buying and selling at 82.90 and 83.00. The rupee was up by 5 paisa against euro for buying and selling at Rs 116.30 and Rs 116.80.
On August 13, the rupee gained 20 paisa against dollar for buying and selling at 82.70 and 82.80. It remained unchanged versus euro for buying and selling at Rs 116.30 and Rs 116.80.
On August 14, the currency market was closed due to Independence Day holiday.
On August 15, the rupee inched up with 5 paisa rise against dollar for buying and selling at 82.65 and 82.75. The rupee, however, shed 5 paisa in terms of euro for buying and selling at Rs 116.35 and Rs 116.85.
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