Khanani & Kalia International (Pvt) Limited Weekly Market Review on Sunday (August 07, 2005).
On Monday, rupee prolonged with the same trend which soon proved to be short lived and the national currency once again came under pressure. Exchange price which was equal to Rs 60/30 at new week's start went up to Rs 60/40 first and then gradually Rs 60/45. However rupee recovered on Saturday and dollar fell to Rs 60/35.
The increase in supply which was recorded went on the back foot and therefore, the dollar dragged rupee down on the desks. Actually this trend had started on Tuesday and rupee pared all its gains which it showed in the previous day's dealings as short supply in the market disabled the national currency from rising further.
Although the rupee started on its overnight positive note but the supply halted its rise due to which the national currency lost all its recovered value. However rupee received technical support due to its steady trend in the inter bank while on the international desks too, dollar was mixed. Dollar came under technical pressure against major currencies in the world market and despite the currency moves on economic indicators, it was also seen dented by natural adjustments after the dollar's bull-run this year investors had started to pare back their exposure, liquidating some of the huge long dollar positions that have built up.