The rupee showed mixed trend versus dollar and euro during the week ending on November 4, 2006. In the interbank market, it showed no major change versus dollar at Rs 60.64 and Rs 60.65 for buying and selling, but in the open market it lost 5 paisa at Rs 60.60 and Rs 60.70 for buying and selling, respectively.
It followed suit in relation to euro, shedding the same amount for buying and selling at Rs 76.70 and Rs 76.80, respectively.
INTER-BANK RATES: On October 30, the rupee-dollar parity rates did not show any change at Rs 60.62 and Rs 60.64 for buying and selling, respectively. The supply of dollars was enough to meet the demand, and this factor helped the rupee to hold its levels.
On October 31, the rupee shed one paisa against dollar for buying and selling at 60.63 and 60.65.
On November 1, the rupee gained 3 paisa for buying and selling at Rs 60.60 and Rs 60.62.
On November 2, the rupee did not show major change versus dollar for buying and selling at 60.61 and 60.63.
On November 3, the rupee moved in a narrow band, showing no major difference in the overnight rates for buying and selling at 60.62 and 60.63, respectively.
On November 4, the rupee shed 2 paisa versus dollar for buying and selling at 60.64 and 60.65.
WORLD MARKET SCENARIO: In the early sessions, the yen rose towards one-month high against dollar after soft US growth data and as traders looked to the release of a Bank of Japan economic outlook report for clues about when Japanese interest rates would climb further.
The dollar was little changed against euro and yen in the New York. It got a brief boost after US personal income rose more than expected and consumption rebounded in September, suggesting that economic growth was likely on solid footing.
In the Asian markets, the yen steadied against the dollar on Tuesday after a closely watched Bank of Japan report did little to change market expectations that the central bank would wait until next year to raise interest rates.
In the middle of the week, the dollar hovered near one-month lows against yen and euro on Wednesday after weak business activity data for US Midwest reinforced market expectations that Federal Reserve would keep interest rates steady for a while. Dealers said that more data showing softness in the economy could further sour sentiment for the dollar.
The dollar crept up against yen on Thursday, edging further away from a one-month low hit on weaker-than-expected factory figures as investors tweaked positions ahead of US jobs data.
The dollar moved in a narrow range against euro and yen on Friday as a Japanese holiday thinned trading volume and investors turned cautious ahead of US jobs data.
At the weekend, the dollar strengthened as a report showed the US economy created more jobs than previously estimated, which supported views that the Federal Reserve would hold its benchmark interest rate steady.
OPEN MARKET RATES: On Monday, the rupee shed 2 paisa versus dollar for buying at Rs 60.55 and 7 paisa for selling at Rs 60.65, dealers said. However, it picked up 12 paisa in terms of euro for buying and selling at Rs 76.65 and Rs 76.75, they said.
On Tuesday, the rupee did not show any change versus dollar for buying and selling at 60.55 and 60.65, dealers said. It gained 20 paisa versus euro for buying and selling at Rs 76.45 and Rs 76.55, they said.
On Wednesday, the rupee picked up 7 paisa versus dollar for buying at 60.48 and 15 paisa for selling at 60.50, dealers said. The rupee, however, dropped 31 paisa versus euro for buying and selling at Rs 76.76 and Rs 76.86, they said.
On Thursday, the rupee shed 2 paisa versus dollar for buying at 60.50 and 10 paisa for selling at 60.60. The rupee also shed 9 paisa versus euro for buying and selling at Rs 76.85 and Rs 76.95, they said.
On Friday, the rupee shed 8 paisa versus dollar for buying at 60.58 and 3 paisa for selling at 60.63, dealers said. The rupee also dropped 5 paisa in relation to euro for buying and selling at Rs 76.90 and Rs 77.00, they said.
On Saturday, the rupee lost 2 paisa against dollar for buying at 60.60 and 7 paisa for selling at 60.70, dealers said. The rupee, however, recovered 20 paisa versus euro for buying and selling at Rs 76.70 and Rs 76.80, respectively.