The rupee drifted lower against the dollar and euro on the money market during the week, ended on July 20. On the interbank market, the rupee fell against the dollar losing 22 paisa for buying at Rs 100.68 and it also fell sharply by 44 paisa for selling at Rs 100.72. On the open market, the rupee also down sharply by Rs 1.70 versus the euro for buying and selling at Rs 134.50 and Rs 134.75.
The rupee hit historical high at Rs 103.25 versus the dollar during the week. The dollar climbed on the back of artificial shortage created by some commercial banks and moneychangers, if the State Bank takes measures, the rupee may recover lost ground against the dollar. Shortage of dollar is pushing the rupee down and on the other hand, dollar holders were also facing problems due to non-availability of the US currency. Nearly, during the four month, whenever, dollar account holders visited the banks to withdraw dollars, they could not get as banks asked them to come later.
The foreign exchange reserves are under pressure owing to less amounts for the payment of import bills, besides payment to the International Monetary Fund (IMF). The widening current account deficit, excessive government borrowing, absence of foreign flows, increase in oil payments, lack of foreign investment and payment to the IMF were actual factor behind the devaluation of the rupee. Furthermore, foreigners are withdrawing the investment and taking dollar outside the country in the absence of business friendly policies and rising uncertainties on both the political end economical fronts. In the meantime, official sources claim panic as well as manipulation by money changers for the growing gap between interbank and open market rates for dollar. To bring the gap narrow between the interbank and open market, the question is who will bell the cat?
INTER-BANK MARKET RATE: On Monday, the rupee lost eight paisa in relation to the dollar for buying and selling at 100.26 and 100.28. On Tuesday, the rupee is still under pressure against the dollar, shedding 40 paisa for buying and selling at 100.36 and 100.38. On Wednesday, rupee lost 44 paisa in relation to the dollar for buying at 100.80 and it shed 47 paisa for selling at 100.85. On Thursday, the rupee inched up by five paisa for buying and selling at 100.75 and 100.80. On Friday, the rupee posted fresh gain of seven paisa in terms of the dollar for buying at 100.68 and the national currency picked up eight paisa for selling at 100.72.
OPEN MARKET RATES: On July 15, the rupee followed the same pattern in terms of dollar, losing 20 paisa for buying and selling at Rs 101.80 and Rs 102.00. The national currency also lost 15 paisa against the euro for buying and selling at Rs 132.40 and Rs 132.65. On July 16, the rupee extended overnight slide, losing 40 paisa for buying and selling at Rs 102.20 and Rs 102.40. The national currency fell sharply in relation to the euro, dipping Rs 1.40 for buying and selling at Rs 133.80 and Rs 134.05. On July 17, the rupee performed the same trend versus dollar losing 20 paisa for buying at Rs 102.50 and it lost 30 paisa for selling at Rs 102.70. The rupee shed 20 paisa against the euro for buying and selling at Rs 134.00 and Rs 134.25. On July 18, the rupee, however, lost 80 paisa in terms of dollar for buying and selling at Rs 103.30 and Rs 103.50. The national currency also dropped sharply in relation to the euro, losing 50 paisa for buying and selling at Rs 134.50 and Rs 134.75.
On July 19, the rupee also rose by 50 paisa for buying and selling at Rs 102.80 and Rs 103.00. The national currency climbed up by 50 paisa in relation to the euro for buying and selling at Rs 134.10 and Rs 134.35. The rupee maintained steadier trend against the dollar for buying and selling at Rs 102.80 and Rs 103.00. The national currency lost 40 paisa in relation to the euro for buying and selling at Rs 134.50 and Rs 134.75.
OVERSEAS MARKET OUTLOOK FOR DOLLAR: In the first Asian trade, the Australian dollar climbed after China's second-quarter economic growth matched market expectations, easing worries that the world's second-largest economy could be slowing faster than expected.
The dollar was trading against the Indian rupee at Rs 60.04, the US currency was at 3.1830 in terms of the Malaysian ringgit and the greenback was available at 6.135 in terms of the Chinese Yuan. Inter bank buy/sell rates for the taka against the dollar on Monday: 77.7500-77.7525 (77.75-77.7550). Call Money Rates: 06.75-08.00 percent (previous 05.50-08.00 percent).
In the second Asian trade, the dollar eased versus a basket of currencies but its losses were limited, supported by the view that the US Federal Reserve is likely to be the first among major central banks to move away from ultra-loose monetary policy.
Many traders were cautious about being too long in the dollar ahead of testimony by Fed Chairman Ben Bernanke, whose surprisingly dovish tone last week caused panic selling in the US currency. The dollar was trading against the Indian rupee at Rs 59.39, the greenback was available at 3.1820 in terms of the Malaysian ringgit, and the US currency at 6.1359 against the Chinese Yuan. Inter bank buy/sell rates for the taka against the dollar on Tuesday: 77.75-77.75 (77.75-77.7525). Call Money Rates: 07.00-07.50 percent (previous 05.50-08.00 percent).
In the third Asian trade, the dollar stayed on the defensive on Wednesday as investors got cold feet ahead of Federal Reserve Chairman Ben Bernanke's testimony to Congress later in the day.
The dollar was trading against the Indian rupee at Rs 59.34, the greenback was available at 3.1920 in terms of the Malaysian ringgit and the US currency at 6.1330 against the Chinese Yuan.
In the fourth Asian trade, the dollar rose on Thursday after remarks from Federal Reserve Chairman Ben Bernanke kept intact expectations that the Fed would be first among the major central banks to move away from ultra-loose monetary policy. Bernanke, in testimony to Congress on Wednesday, said the Fed still expects to start scaling back its massive bond purchase programme later this year, but he left open the option of altering that plan if the economic outlook changes.
The dollar was trading against the Indian rupee at Rs 59.76, the greenback was at 3.1960 in terms of the Malaysian ringgit and the US currency was at 6.1396 in relation to the Chinese Yuan. Inter bank buy/sell rates for the taka against the dollar on Thursday: 77.75-77.76 (77.75-77.76). Call Money Rates: 07.10-07.50 percent (previous 05.50-08.00 percent).
In the final Asian trade, the yen rose as investors squared their books ahead of Japan's upper house election this weekend, which could clear the legislative path for Prime Minister Shinzo Abe's aggressive economic reform drive.
Recent opinion polls have shown that Abe's ruling bloc remains on track to take a hefty majority in the upper house, putting an end to a "twisted parliament" in which the opposition controls the upper chamber.
The dollar was trading against the Indian rupee at Rs 59.81, the greenback was at 3.1980 in terms of the Malaysian ringgit and the US currency was available at 6.139 versus the Chinese yuan.
At the week-end, the dollar slipped against the yen in late trade on Friday ahead of elections for Japan's upper house Sunday which could add momentum to Prime Minister Shinzo Abe's aggressive push for monetary easing to lift growth and fight deflation.
Earlier the dollar had held near a one-week high against the yen but as trading slowed ahead of the weekend, the US currency gave up gains.
Comments
Comments are closed.