The rupee drifted lower against dollar in the currency market during the week ended on August 12, 2007. In the inter bank market, the rupee shed two paisa in relation to dollar for buying and selling at 60.43 and 60.44.
Same trend was seen in the open market where it lost three paisa versus dollar for buying at 60.80 and it was also down by five paisa for selling at 60.85, they said.
The rupee moved both ways against the euro as it depicted firm trend during the early sessions of the week, but in the middle of the week it started coming down and was lower by 86 paisa for buying and selling at Rs 82.81 and 60.85, dealers said.
According to some currency experts, the rupee depicted slight weakness against dollar as a result of high inflows due to healthier trend in the remittances and foreign direct investment (FDI) in the country. They, however, said that the rupee may fall under the circumstances following some uncertainties on political front.
As a result of high pressure on the buying side, according to the State Bank of Pakistan, (SBP), the dollar was dearer as the country's foreign exchange reserves fell by a marginal 13 million dollars to 15.779 billion dollars.
INTER-BANK MARKET RATES: On Monday, the rupee moved slightly against the dollar for buying and selling at 60.41 and 60.42.
On Tuesday, the rupee maintained the same levels in process of trading dealers said. The dollars' supply was good, this factor helped the rupee to hold its firmness in terms of the dollar, they said.
On Wednesday, the rupee did not show major change against the dollar for buying and selling at 60.40 and 60.42, respectively. On Thursday, the rupee shed three paisa for buying at 60.43 and lost two paisa for selling at 60.44, dealers said.
On Friday, the rupee was almost unchanged at 60.43 and Rs 60.45, dealers said. The rupee maintained its almost overnight levels for buying and selling at 60.43 at 60.44, dealers said.
On Saturday, the rupee was unchanged against dollar for buying and selling at 60.43 at 60.44, dealers said.
INTERNATIONAL MARKET SCENARIO: In the first and second sessions, the dollar showed mixed trend against the major currencies due to several factors, dealers said.
In the third session, the dollar rose against the yen in the Asian market after the Federal Reserve said that the inflation remains its primary concern, trimming expectations that it might move to cut interest rates.
In the fourth session, the yen steadied against major currencies after sliding the previous day as a rebound in stock and credit markets spurred a revival of carry trades using the low-yielding Japanese currency.
The yen rose sharply for the second straight day as steep declines in global equity markets prompted investors to bail out of risky trades financed by borrowing in the Japanese currency.
World major equities tumbled, government bonds rallied, and expectations of global central bank tightening drastically scaled back amid concern that US subprime mortgage-related losses will spill over and choke economic growth.
OPEN MARKET RATES: On August 6, the rupee was trading at 60.83 and 60.90, dealers said. It drifted marginally against the euro at Rs 83.65 and Rs 83.75, they said. On August 7, the rupee shed two paisa againstdollar for buying while it held its overnight level for selling at 60.90, dealers said.
The rupee gained 10 paisa against euro for buying and selling at Rs 83.56 and Rs 83.66, they said. On August 9, the rupee maintained its overnight gains against dollar, picking up five paisa for buying and selling at 60.80 and 60.85, dealers said.
The rupee followed suit and picked up 36 paisa versus euro for buying and selling at Rs 83.20 and Rs 83.30, they added. On August 10, the rupee did not show any change against dollar for buying and selling at 60.80 and Rs 60.85 in process of trading, dealers said. The rupee lost 30 paisa against euro for buying and selling at Rs 83.50 and Rs 83.60, they said.
On August 11, the rupee did not show any change against dollar for buying and selling at 60.80 and 60.85, dealers said. The rupee lost 31 paisa against euro at Rs 82.81 and Rs 82.91, they said.