The rupee sustained its firmness against the dollar on the money market during the week, ended on March 12, 2016. In the interbank market, the rupee picked up seven paisas in relation to the dollar for buying and selling at Rs 104.66 and Rs 104.68.
In the open market, the rupee gained 20 paisas in terms of the greenback for buying and selling at Rs 105.60 and Rs 105.80. The rupee, however, lost Rs 1.90 against the euro for buying and selling at Rs 117.10 and Rs 118.10.
Commenting on the firmness of the local currency, some experts said that the exporters were demanding devaluation of the rupee to revive the industrial activities in the country.
They said that exports of textile products have already declined and if the rupee not devalued in the near future, it is feared that more industrial units may close down in the coming days. They said that stuck-up refunds of around Rs 300 billion belonging to exporters with the Federal Board of Revenue ere an additional disturbing factor for the exporters, they observed.
Reports showing that country's remittances rise 6 percent to 12.7 billion dollars.
INTER-BANK MARKET RATES: On Monday, the rupee maintained week-end's recovery against the dollar, rising three paisas for buying and selling at Rs 104.73 and Rs 104.75. On Tuesday, the rupee almost held the overnight levels in terms of the dollar for buying and selling at Rs 104.74 and Rs 104.75. On Wednesday, the rupee inched up by one paisa in terms of the dollar for buying and selling at Rs 104.73 and Rs 104.74. On Thursday, the rupee moved up slightly against the dollar, gaining three paisas for buying and selling at Rs 104.71 and Rs 104.72.
On Friday, the rupee maintained its rising trend in relation to the dollar, picking up more four paisas for buying and selling at Rs 104.66 and Rs 104.68.
OPEN MARKET RATES: On Mar 07, the rupee also picked up 10 paisas more in relation to the dollar for buying and selling at Rs 105.80 and Rs 106.00. The rupee also gained 30 paisas against the euro for buying and selling at Rs 115.20 and Rs 116.20.
On Mar 08, the rupee also extended gains, picking up 20 paisas more in relation to the dollar for buying and selling at Rs 105.60 and Rs 105.80. The rupee, however, shed 40 paisa versus the euro for buying and selling at Rs 115.60 and Rs 116.60.
On Mar 09, the rupee did not budge any side in relation to the dollar for buying and selling at Rs 105.60 and Rs 105.80. While, the rupee gained 35 paisa versus the euro for buying and selling at Rs 115.25 and Rs 116.25. On Mar 10, the rupee maintained overnight levels in relation to the dollar for buying and selling at Rs 105.60 and Rs 105.80. While, the rupee reversed back its overnight gains, losing 35 paisa versus the euro for buying and selling at Rs 115.60 and Rs 116.60.
On Mar 11, the rupee sustained overnight levels versus the dollar for buying and selling at Rs 105.60 and Rs 105.80. While, the rupee lost 90 paisas in terms of the euro for buying and selling at Rs 116.50 and Rs 117.50.
On March 12, the rupee was unchanged against the dollar for buying and selling at Rs 105.60 and Rs 105.80. While, the rupee extended losses, shedding 60 paisas in terms of the euro for buying and selling at Rs 117.10 and Rs 118.10,.
OVERSEAS OUTLOOK FOR DOLALR: In the first Asian trade, the dollar struggled after failing to gain on stronger-than-expected US payrolls data, while the Australian dollar fell prey to profit-taking after its best weekly performance in more than four years.
The greenback had initially gained on Friday in a knee-jerk reaction to an upbeat non-farm payrolls report which showed solid job growth of 242,000.
But the dollar went into reverse as markets appeared to latch onto a disappointing fall in hourly earnings. While the robust payrolls report raised prospects of the Federal Reserve hiking interest rates this year, the decline in earnings helped temper such hopes. The dollar was down 0.2 percent at 113.605 yen after rising briefly to 114.25 on Friday following the employment report release.
The dollar was trading against the Indian rupee at Rs 67.08, the US currency was at 4.0890 in terms of the Malaysian ringgit and the greenback was at 6.5138 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Monday: 78.43-78.43 (previous 78.45-78.45).
In the second Asian trade, the perennial safe-haven yen logged solid gains against the dollar and euro in Asian trade as risk appetites waned, and downbeat Chinese trade data fuelled concerns about the state of global demand. China's February exports disappointed analysts' expectations, falling 25.4 percent from a year earlier, while imports fell by 13.8 percent.
The dollar was trading against the Indian rupee at Rs 67.38, the greenback was at 4.1040 versus the Malaysian ringgit and the US currency was at 6.5071 in terms of the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Tuesday. 78.41-78.43 (previous 78.43-78.43
In the third Asian trade, the yen was broadly firmer as demand for the safe-haven currency picked up after disappointing Chinese trade data took the wind out of a global rally rooted in stronger risk appetites.
The dollar last stood little changed at 112.585 yen, having slid 0.7 percent overnight, while the euro was down 0.4 percent at 123.54 yen, well off Friday's high of 125.585.
The dollar was at Rs 67.36 versus the Indian rupee, the US currency was available at 4.1200 in terms of the Malaysian ringgit and the greenback was at 6.5149 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Wednesday: 78.40-78.40 (previous 78.41-78.43).
In the forth Asian trade, the euro was under pressure in Asian trade on Thursday ahead of a European Central Bank meeting at which policymakers were expected to take further easing steps, while the kiwi skidded after the Reserve Bank of New Zealand surprised with an interest rate cut.
The rupee was available at Rs 67.08 in relation to the Indian rupee, the greenback was at 4.1150 in terms of the Malaysian ringgit and the US currency was at 6.5157 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Thursday: 78.40-78.41 (previous 78.40-78.40).
In the final Asian trade, the euro hovered near a three-week high on Friday, standing atop big gains made overnight after the European Central Bank roiled markets by suggesting that it was done cutting interest rates for now.
The euro rallied hard, however, after ECB President Mario Draghi undid the very stimulus he hoped to achieve by signalling there would be no further rate cuts.
Malaysian ringgit and the US currency was at 6.4927 versus the Chinese yuan.
At the week-end, the dollar fell, nearing a one-month low against a basket of major currencies, as investors bought riskier assets following surprising announcements from the European Central Bank and People's Bank of China.
Commodities rose on Friday after China fixed higher its onshore yuan rate against the dollar by the fastest pace this year to 6.4850 yuan. The People's Bank of China had set its official yuan/dollar midpoint rate CNY=SAEC at 6.4905 per dollar, its strongest fixing in 2016.
The euro regained its footing against the dollar after ECB Governing Council member Erkki Liikanen said the central bank had not run out of tools to boost the economy and would continue to support it until it reaches its inflation target of almost two percent.
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