The rupee crossed the barrier of Rs 100 against the dollar in the local currency market during the week, ended on 16 Aug, 2014. In the inter bank market, the rupee lost 60 paisa versus the dollar for buying at Rs 99.95 and the local currency shed 58 paisa for selling at Rs 99.98.
In the open market, the rupee followed same pattern, losing 55 paisa in terms of the dollar for buying at Rs 99.75 and Rs 99.95, the local currency also fell by 95 paisa versus the euro for buying and selling at Rs 133.20 and Rs 133.45.
Commenting on the fresh erosion in the value of the rupee, currency viewers said that the local currency dropped due to law and order situation in the country. Some other experts were of the opinion that due to political instability the dollar succeeded to cross Rs 100 barrier versus the dollar. During the week, business activity in both Sindh and particularly in the Punjab came under pressure due to blocking of roads by government to handle demonstrations and protests by PTI and PAT. In fact, these uncertainties mounted pressure on dollar buying, they said.
An unforeseen uncertainty hovering these days due to persisting political instability created by demands and protests by leaders of PTI and PAT, some experts said.
On the other hand, rupee's sharp fall attributed to large payment to the International Monetary Fund (IMF) and oil payments. To clear payments, the SBP bought dollars from small banks, causing shortage and high demand.
INTER-BANK MARKET RATES: On Monday, the rupee crossed the barrier of Rs 99 against the dollar, losing 49 paisa for buying at Rs 99.35 and the national currency lost 52 paisa for selling at Rs 99.40. On Tuesday, the rupee managed to recover some ground versus the dollar for buying and selling at Rs 99.30 and 99.35. On Wednesday, the rupee lost 65 paisa against the dollar for buying and selling at Rs 99.95 and Rs 100.00. All commercial centres including banks were closed on account of 68th Independence Day holiday. On Friday, the rupee was unchanged against the dollar for buying and Rs 99.95 and the national currency inched up by two paisa at Rs 99.98.
OPEN MARKET RATES: On August 11, the rupee was also down by 50 paisa versus the dollar for buying Rs 99.20 and it also lost 60 paisa for selling at Rs 99.40. The rupee also dropped by 50 paisa in terms of the euro for buying and selling at Rs 132.25 and Rs 132.50.
On August 12, the rupee, however, shed 10 paisa versus the dollar for buying and selling at Rs 99.30 and Rs 99.50. The rupee picked up 25 paisa against the euro for buying and selling at Rs 132.00 and Rs 132.25. On August 13, the rupee lost 40 paisa versus the dollar for buying and selling at Rs 99.70 and Rs 99.90, they said. The rupee picked up 25 paisa against the euro for buying and selling at Rs 132.00 and Rs 132.25.
On August 15, the rupee continued slide against the dollar, losing 20 paisa versus the dollar for buying and selling at Rs 99.90 and Rs 100.10. The rupee also dropped by 80 paisa in relation to the euro for buying and selling at Rs 132.80 and Rs 133.05.
On August 16, the rupee gave up weakness against the dollar, rising 15 paisa for buying and selling at Rs 99.75 and Rs 99.95. The rupee, however, lost 40 paisa in relation to the euro for buying and selling at Rs 133.20 and Rs 133.45.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the yen eased versus the dollar, having backed off from peaks hit late last week as a slight relaxation in geopolitical tensions dampened demand for the safe-haven Japanese currency. The dollar inched up 0.1 percent to 102.17 yen, having bounced off Friday's two-week trough of 101.51. The euro edged up 0.1 percent to 136.91 yen, well off an 8-1/2 month low of 135.73 set on Friday.
The dollar was trading against the Indian rupee at Rs 61.10, the greenback was available at 3.1955 in terms of the Malaysian ringgit and the US currency was at 6.153 versus the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Monday. 77.48-77.48 (previous) 77.48-77.48). Call Money Rates: 06.00-07.75 percent (previous 05.75-07.75 percent).
In the second Asian trade, the dollar edged higher, getting a slight lift as US Treasury yields inched away from recent lows, though concerns over rising tensions in Ukraine and the Middle East still looked set to cap the greenback's advance. The dollar index rose about 0.1 percent to 81.519.
The dollar was trading against the Indian rupee at Rs 61.18, the US currency was available at 3.1930 in terms of the Malaysian ringgit and the greenback was at 3.1965 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Tuesday. 77.46-77.48 (previous 77.48-77.48). Call Money Rates: 05.75-07.25 percent (previous 05.75-07.50 percent).
In the third Asian trade, the yen held steady versus the dollar on Wednesday, showing limited reaction to the widely expected contraction in Japan's economy in April-June, while the euro hovered above the previous day's lows.
Japan's economy shrank an annualised 6.8 percent in the second quarter, suffering its biggest contraction since the devastating March 2011 earthquake as a sales tax hike took a heavy toll on household spending.
The dollar was trading against the Indian rupee at Rs 61.25, the greenback was at 3.1890 in terms of the Malaysian ringgit and the US currency was available at 6.159 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Wednesday. 77.45-77.46 (previous 77.46-77.48). Call Money Rates: 05.75-07.25 percent (previous 05.50-07.25 percent).
In the fourth Asian trade, sterling set a fresh four-month low, staying on the defensive after the Bank of England surprised investors the previous day by signalling it was in no hurry to raise interest rates. The pound touched a low of $1.6668, its lowest level since mid-April, and down 3 percent from a near six-year high of $1.7192 touched in mid-July.
The dollar was at Rs 61.07 versus the Indian rupee, the greenback was trading in terms of the Malaysian ringgit at 3.1790 and the US currency was at 6.154 in relation to the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Thursday. 77.44-77.45 (previous 77.45-77.46). Call Money Rates: 05.50-07.25 percent (previous 05.50-07.25 percent).
In the final Asian trade, the euro steadied, accepting soft euro zone inflation and disappointing growth data as keeping alive prospects of more stimulus from the European Central Bank.
Knocks taken by the dollar following the release of lacklustre weekly jobless claims on Thursday also underpinned the euro as the number of Americans filing new claims for unemployment benefits last week rose more than expected.
The dollar was trading against the Indian rupee at Rs 60.76, the US currency was at 3.1620 versus the Malaysian ringgit and the greenback was available at 6.147 in terms of Chinese yuan.
At the week-end, the US dollar weakened against the euro on Friday, erasing much of the week's gains, as investors that had bet on the greenback's strength closed out positions before the weekend. Investors had been trimming short bets on the euro before the release of US economic data on Friday, sending the greenback lower. The dollar pared some of its weakness after data showed that US industrial production edged higher in July, as production of auto parts and motor vehicles rose 10.1 percent.
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