Bullish trend was seen on the currency market during the week ended on April 10, 2010. On the interbank market, the rupee gained 39 paisa against dollar for buying and selling at 84.04 and 84.07. On the open market, the rupee rose by 25 paisa versus dollar for buying and selling at 84.15 and 84.25, whereas it gained 70 paisa in terms of euro for buying and selling at Rs 112.65 and Rs 113.15.
As a result of slight improvement in the supply of the US currency, the rupee showed significant rise in its value against the greenback, and it seemed that it might move further up in the coming days. The improvement in rupee value was on expectations of inflows of foreign direct investment (FDI). It is expected that the situation may improve in the coming days after the emergence of progress on the political and economic fronts.
The rupee managed to retain its level versus dollar in the middle of the week after an apparent positive development on the political front following the approval of the 18th Amendment Constitutional Bill 2010 by the Cabinet. The achievements pronounced time and again about the National Finance Commission (NFC) award and now 18th constitutional amendment hardly console the victims of unemployment, skyrocketing prices and, off course, power load shedding without end in sight.
INTER-BANK MARKET RATES: On Monday, the rupee recovered 23 paisa against dollar for buying at 84.20 and 22 paisa for selling at 84.24. On Tuesday, the rupee rose 30 paisa versus dollar for buying and selling at 83.90 and 83.94.
On Wednesday, the rupee gained 30 paisa versus dollar for buying at 83.60 and 26 paisa for selling at 83.70.
On Thursday, the rupee shed five paisa for buying at 83.65 while it did not show any change for selling at 83.70. On Friday, the rupee lost 36 paisa versus dollar for buying and selling at 84.01 and selling at 84.06. On Saturday, the rupee was down by three paisa against dollar for buying at 84.04 and one paisa for selling at 84.07.
OVERSEAS OUTLOOK FOR DOLLARS: On the first Asian session, the dollar eased against the yen with traders pocketing profits after the greenback vaulted to its highest in more than seven months earlier in the day. During the second session, the Australian dollar gained after the Reserve Bank of Australia (RBA) raised its cash rate on Tuesday although with many in the market already holding the currency, the hike wasn't enough to propel it up substantially. The euro tumbled as bearish sentiment reignited, aided by reports on Greece's fiscal problems, while sterling eased ahead of an expected election announcement in Britain and the yen seized back lost ground as short yen positions looked stretched.
During the third Asian session, the yen gave up some ground as the Australian dollar pushed to a fresh 18-month high, while the euro began to lose its footing again as Greek debt worries kept it under pressure.
During the fourth Asian trade, the euro ground closer to this year's low against the dollar, waiting for the ECB to flesh out lending rules likely to support Greece, while jobs data in Australia wasn't quite upbeat enough to power up the Aussie.
In the final session of Asian market, the yen retreated on selling by short-term players on the view that the currency's rise the previous day on talk of a near-term yuan revaluation was overdone. The euro rose earlier as investors trimmed record-high short positions, but the single currency struggled to keep those gains as worries about debt-laden Greece simmered in the background.
In the final session of Asian market, the yen retreated on selling by short-term players on the view that the currency's rise the previous day on talk of a near-term yuan revaluation was overdone.
The euro rose earlier as investors trimmed record-high short positions, but the single currency struggled to keep those gains as worries about debt-laden Greece simmered in the background.
At the week-end, the euro rose after an EU source said euro zone leaders had agreed to terms of a possible emergency loan aimed at helping Greece manage a worsening debt crisis. The news allowed traders to shrug off a downgrade by Fitch of Greece's credit rating by two notches, to one grade above junk status.
Fitch Ratings cited Athens' fiscal challenges and uncertainty about how a European Union-International Monetary Fund aid program agreed last month would be applied. The dollar is expected to fall in the week ahead as investors consider that euro declines on uncertainty surrounding the debt problems in Greece have been too far, too fast.
The euro has tumbled 5.9 percent year to date, mostly on concerns fiscal woes in smaller economies on the edge of the euro zone could drag down the entire bloc.
But euro zone deputy finance ministers and senior central bankers have reached an agreement on the terms of possible emergency loans for Greece, a European Union source said on Friday.
OPEN MARKET RATES: On April 5, the rupee shed five paisa against dollar for buying at 84.45 and 10 paisa for selling at 84.60. The rupee, however, gained 35 paisa in relation to euro for buying and selling at Rs 113.00 and Rs 113.50.
On April 6, the rupee gained 25 paisa versus dollar for buying at 84.20 and 20 paisa for selling at 84.40. The rupee also picked up 85 paisa in terms of euro for buying and selling at Rs 112.15 and Rs 112.65. On April 7, the rupee gained 10 paisa against dollar for buying and selling at 84.10 and 84.30. The rupee was also up by 20 paisa in relation to euro for buying and selling at Rs 111.95 and Rs 112.45.
On April 8, the rupee gained 20 paisa versus dollar for buying and selling at 83.90 and 84.10. The rupee also expanded its surge in terms of the euro, gaining Rs 1.25 for buying and selling at Rs 110.70 and Rs 111.20.
On April 9, the rupee shed 10 paisa against dollar for buying at 84.00 and 5 paisa for selling at 84.15. The rupee lost 85 paisa in relation to euro for buying and selling at Rs 111.55 and Rs 112.05. On April 10, the rupee was lower by 15 paisa against dollar for buying at 84.15 and 10 paisa for selling at 84.25. The rupee lost Rs 1.10 versus the euro for buying and selling at Rs 112.65 and Rs 113.15.
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