Khanani & Kalia International (Pvt) Limited Weekly Market Review on Sunday (September 25, 2005).
Trading set off Rs 60/10 on Monday and dollar kept rupee under pressure through out. Therefore, rupee changed hands at Rs 60/30 at close at close of markets on Saturday. In the inter bank dealings, the dollar started the current week at Rs 59/79 for buying and Rs 59/95 for selling. On the international desks on Friday, the US dollar rallied across the board on Friday on a combination of a downgrade in the strength of Hurricane Rita and a widening in the trading band of China's currency against non-US dollar currencies.
Beijing's decision the yuan's trading range against the euro, pound, yen and Hong Kong dollar to + (-)3% came two months after its announcement to revalue the yuan by 2.1% against the US dollar and allow that rate to fluctuate by + (-)0.3%. Markets focused on the probability of further yuan appreciation against the dollar, which fed into a resulting strengthening in the Asian currencies versus the dollar.
The single currency kicked off new week at Rs 72/90, remained under pressure against the local currency and changed hands at Rs 72/60 at close of markets on Saturday. Thus, the rupee gained 0/30 paisa. In the inter bank dealing, euro started the new week at Rs 72.615 for buying and Rs 72.9577 for selling on Monday and closed the markets at Rs 71/7956 for buying and Rs 72/1346 for selling on Saturday.