Strong demand for dollars forced the rupee to travel in negative territory during the week, ended on October 26, 2013. In the interbank market, the rupee fell by 10 paisa in relation to the dollar for buying at Rs 106.45 and it also shed eight paisa for selling at Rs 106.48.
In the open market, the rupee dropped by 10 paisa versus the dollar for buying at Rs 106.40 and it also slid by 15 paisa for selling at Rs 106.65, the national currency also fell in terms of the euro, losing Rs 1.20 to Rs 144.00 and it was down by 95 at Rs 144.50.
The rupee resisted sharp fall versus the dollar on the back slight improvement in supply of the US currency. The rupee is still on the way of slide due to persisting demand by the importers, particularly from gold importers.
INTER-BANK MARKET RATES: On Monday, the rupee dropped by five paisa in terms of the dollar for buying at Rs 106.35 and it fell by six paisa for selling at Rs 106.40. On Tuesday, the rupee did not fluctuate sharply versus the dollar, moving at Rs 106.34 and Rs 106.39 for buying and selling.
On Wednesday, the rupee dropped by 14 paisa in terms of the dollar for buying and selling at Rs 106.48 and Rs 106.50. On Thursday, the rupee shed two paisa in terms of the dollar for buying and selling at Rs 106.50 and Rs 106.52.
On Friday, the rupee rose by five paisa in relation to the dollar for buying at Rs 106.45 and it also picked up four paisa for selling at Rs 106.48.
OPEN MARKET RATES: On October 21, the rupee continued its depreciation versus the dollar, shedding 10 paisa against the dollar for buying and selling at Rs 106.30 and Rs 106.50. The rupee also lost 25 paisa in terms of the euro for buying and selling at Rs 144.00 and Rs 144.25. On October 22, the rupee extended its fall in terms of the dollar, losing 20 paisa for buying and selling at Rs 106.50 and Rs 106.70, they added. The rupee followed same pattern in relation to the euro, shedding 25 paisa for buying and selling at Rs 144.25 and Rs 144.50, they said.
On October 23, the rupee, however, gained 10 paisa versus the dollar for buying and selling at Rs 106.40 and Rs 106.60, they added. The rupee extended overnight fall, losing 50 paisa in relation to the euro for buying and selling at Rs 144.75 and Rs 145.00, they said. On October 24, the rupee followed same track, losing 15 paisa versus the dollar for buying and selling at Rs 106.55 and Rs 106.75, they added. The rupee slipped after shedding 50 paisa more in relation to the euro for buying and selling at Rs 145.25 and Rs 145.50, they said.
On October 25, the rupee adopted the same pattern, rising 15 paisa versus the dollar for buying at Rs 106.40 and the national currency also gained 10 paisa for selling at Rs 106.65. While, the rupee did not show any change against the euro for buying and selling at Rs 145.25 and Rs 145.50. On October 26, the rupee fell by 10 paisa against the dollar for buying at Rs 106.50 and it also shed five paisa for selling at Rs 106.70. The rupee, however, made little gain in relation to the euro for buying and selling at Rs 145.20 and Rs 145.45.
OVERSEAS OUTLOOK FOR DOLLAR: In the first trading, the dollar was mired near an 8-month low against a basket of currencies on growing expectations the US Federal Reserve will have to delay scaling back its stimulus following a 16-day government shutdown. The dollar index held steady at 79.675, not very far from a trough of 79.478 touched on Friday, its lowest level since February.
"In the last two months, previous payrolls figures were revised down. The US economy is losing steam and cannot withstand tapering," said Daisuke Uno, chief strategist at Sumitomo Mitsui Bank.
The dollar was trading against the Indian rupee at Rs 61.27, the greenback was at 3.1680 in terms of the Malaysian ringgit and the US currency was at 6.0927 in relation to the Chinese yuan.
In the second Asian trade, the dollar edged higher on Tuesday, holding above eight-month lows as investors hedged their bets in case US payrolls date later in the day is stronger than expected.
The dollar index, which tracks the greenback's performance against a basket of major currencies, edged up 0.1 percent to 79.779, holding above Friday's 8-1/2 month low of 79.478 but still down more than 1 percent from a peak touched last Wednesday.
Inter bank buy/sell rates for the taka against the dollar on Tuesday. 77.75-77.75 (77.7500-77.7525) Call Money Rates: 07.00-09.00 percent (previous 05.50-09.50 percent). The dollar was available against the Indian rupee at Rs 61.27, the greenback was at 3.1680 in terms of the Malaysian ringgit and the US currency was available at 6.0927 versus the Chinese yuan.
In the third Asian trade, the dollar set a fresh two-year low against the euro after disappointing US jobs data cemented expectations that the Federal Reserve will not begin to taper its stimulus until early next year.
The dollar was trading against the Indian rupee at Rs 61.66, the greenback was at 3.1485 in relation to the Malaysian ringgit and the greenback was available at 6.087 in terms of the Chinese yuan.
In the forth Asian trade, In the final Asian trade, the dollar edged up against major counterparts in early Asian trade, but was hemmed in recent ranges as investors remained cautious about liquidity conditions in China. Chinese short-term money-market rates rose sharply to three-month highs on Wednesday after the People's Bank of China failed to inject cash for a second day and regulators expressed concern about loose liquidity and hinted they are considering taking measures to address inflation risks.
The dollar was trading against the Indian rupee at Rs 61.46, the Greenback was at 3.1530 in terms of the Malaysian ringgit and the US currency was available at 6.081 in terms of the Chinese yuan.
At the week-end, the euro rose against the dollar, hovering close to a two-year high, as souring German business morale did little to dent bullish sentiment toward the euro zone common currency.
German Ifo business sentiment data fell unexpectedly for the first time in six months, sparking concern about the impact of a stronger euro on the region's exporters.
That followed sub-forecast euro zone private sector activity surveys on Thursday, suggesting that recovery in the euro zone has stalled.
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