As a result of Nato deal, all-round gains were seen on the currency market during the week, ended on July 7, 2012. In the inter-bank market the rupee gained 55 paisa in relation to dollar for buying and selling at 94.05 and 94.10. In the open market the rupee picked up Rs 1.45 in terms of dollar for buying and selling at 94.20 and 94.40.
Versus euro the rupee gained sharply, rising by Rs 4.50 for buying and selling at Rs 116.00 and Rs 117.00.
According to a report Pakistan and the United States reached a deal on Tuesday to re-open land routes that Nato uses to supply troops in Afghanistan, ending a seven-month crisis that damaged ties between the two countries. The Pak-US Nato deal helped the rupee to recover against dollar in the currency market.
Hopes that inflows from the US and other sources would start soon played a vital role in rupee's firmness versus dollar.
Other major factor was narrowing the differences between open and inter-bank market rates, so, easy supply of dollars may help the rupee to minimise the fall in the coming days.
INTER-BANK MARKET RATES: On Monday the rates in the inter-bank market were not issued due to bank closing.
On Tuesday the rupee commenced the new fiscal yean 2012-13 on a firm note showing no change against dollar for buying and selling at 94.60 and 94.65.
On Wednesday the national currency strengthened against dollar, picking up 10 paisa for buying and selling at 94.40 and 94.50.
On Thursday, the rupee inched up versus dollar, picking up two paisa for buying at 84.38 and gaining eight paisa for selling at 94.42.
On Friday in terms of the greenback the rupee gained 33 paisa for buying at 94.05 and by 32 paisa for selling at 94.10.
OPEN MARKET RATES: On July 2 the rupee shed 15 paisa in terms of dollar for buying and selling at 95.65 and 95.85. The rupee, however, gained 30 paisa against euro for buying and selling at 119.50 and Rs 120.50.
On July 3 the rupee shed five paisa in terms of dollar for buying and selling at 95.70 and 95.90. The rupee also dropped by 20 paisa against euro for buying and selling at 119.70 and Rs 120.70.
On July 4 the rupee went up by 70 paisa in terms of dollar for buying and selling at 95.00 and 95.20. The rupee dropped sharply versus euro, losing Rs 1.70 for buying and selling at 118.00 and Rs 119.00.
On July 5 the rupee was higher by 10 paisa in terms of dollar for buying at 94.90, it, however, dropped sharply by 70 paisa for selling at 95.90. The rupee also lost 60 paisa versus euro for buying and selling at 118.60 and Rs 119.60.
On July 6 the rupee adopted the healthy pattern in the open market, rising by 60 paisa for buying at 94.30 and gaining Rs 1.30 for selling at 94.60. The rupee also picked up Rs 2.10 versus euro for buying and selling at 116.50 and Rs 117.50.
On the July 7 the rupee managed to gain 10 paisa against dollar for buying at 94.10 and picked up 20 paisa for selling at 94.40. The rupee also picked up 50 paisa versus euro for buying and selling at 116.00 and Rs 117.00.
OVERSEAS MARKET OUTLOOK FOR DOLLAR: In the first day of Asian trade euro dipped, giving up a bit of ground after its biggest one-day climb in eight months, as investors looked for fresh reasons to extend a rally sparked by initial euphoria over the latest European push to ease the region's debt crisis.
Markets cheered after euro zone leaders agreed on Friday to let their rescue fund inject aid directly into stricken banks from next year and intervene on bond markets to support troubled members.
The EU leaders also took a step towards banking union by pledging to create a single banking supervisor. Inter bank buy/sell rates for taka against dollar on Monday: 81.81-81.83 (previous 81.80-81.83). Call Money Rates: 9.50-15.00 percent (previous 9.55-15.00 percent). Versus dollar, the Indian rupee was trading at Rs 55.89, dollar was at 3.1670 in terms of Malaysian ringgit and the greenback was trading versus the Chinese yuan at 6.349.
In the second day of Asian trade the euro and US dollar climbed off early lows but remained under pressure after dismal factory data from Europe to the United States raised expectations for more action from central banks in both regions.
Investors' hopes for the European Union's plan to support debt-laden countries turned to scepticism, which was further fanned by Monday's report showing US manufacturing activity contracted for the first time in nearly three years.
In the euro zone the jobless rate rose to a record high in May, and a measure of factory activity held steady at its lowest level since June 2009, lending credence to those who believe the European Central Bank will cut interest rates at its policy meeting on Thursday.
Inter bank buy/sell rates for a against dollar on Tuesday: 81.80-81.82 (previous 81.81-81.83) Call Money Rates: 9.50-15.00 percent (previous 9.50-15.00 percent)
The partially convertible Indian rupee closed at 54.36/37 per dollar, after hitting 54.35, its strongest level since May 17 and two percent above its close of 55.43/44 on Monday. The yuan closed at 6.3523 per dollar on Tuesday, 35 pips weaker than Monday's close, after the central bank set its midpoint 32 pips weaker at 6.3178.
In the third Asian trade euro inched lower on bond redemption-related selling, with some investors stuck on the sidelines for the US market holiday, while others took positions before a European Central Bank policy meeting on Thursday.
The euro dipped 0.2 percent to $1.2588, still holding above the Tuesday's low of 1.2559. Immediate resistance loomed at 1.2693, a high reached on Friday after European leaders hammered out a deal to tackle the region's debt crisis.
Inter bank buy/sell rates for the taka against the dollar on Wednesday. 81.80-81.82 (previous 81.80-81.82) Call Money Rates: 10.50-15.00 percent (previous 9.50-15.00 percent).
The dollar was trading against the Indian rupee at Rs 54.61, the greenback in terms of the Malaysian Ringgit at 3.1485 and the US currency was available in terms of the Chinese yuan at 6.346.
In the fourth Asian trade, the euro wallowed near one-week lows on Thursday, with trading subdued in the wake of a US holiday and ahead of a widely expected interest rate cut by the European Central Bank later in the day.
The ECB is due to announce its decision at 1145 GMT, followed by a news conference by ECB President Mario Draghi.
A Reuters poll of economists showed the majority expect the central bank to cut its main rate by 25 basis points to 0.75 percent, but they were evenly split on whether the ECB will lower its deposit rate.
The dollar was available against the Indian rupee at Rs 55.01, the dollar was at 3.1610 in terms of the Malaysian ringgit and the greenback was trading in relation to the Chinese yuan at 6.3523.
Inter bank buy/sell rates for the taka against the dollar on Thursday. 81.81-81.83 (previous 81.80-81.82). Call Money Rates: 6.50-13.00 percent (previous 10.50-14.00 percent).
In the final Asian trade, the euro languished at five-week lows against the greenback and at record troughs versus commodity currencies such the Australian dollar as markets showed themselves thoroughly uninspired by the European Central Bank's latest attempt to bolster the EU economy.
Weaker global risk assets sent the Indian rupee lower for a third straight session on Friday, sparking an unexpected intervention from the central bank that prevented the currency from posting its biggest loss in two weeks.
The dollar was available versus the Malaysian ringgit at 3.1700
And the greenback was at 6.3655.
At the week-end, the euro fell to a two-year low against the US dollar on Friday after a report showed US employers hired at a dismal pace in June, stoking strong risk aversion and a flight to safe havens that put recent central bank interest rate cuts in stark relief.
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