Inflows helped the rupee against steep losses amid strong demand for the US currency during the week ended on April 11, 2009. On the interbank market, the rupee moved both ways versus dollar as it shed 2 paisa for buying at 80.55 and inched up 4 paisa for selling at 80.60.
On the open market, the rupee came under pressure due to heavy buying by importers as it lost 35 paisa for buying at 80.80 and 30 paisa for selling at 80.60.
The local currency, however, gained Rs 2.50 against euro for buying and selling at 80.55 and 80.60. Against market expectations, improved supply of dollars aided the rupee to hold on to its current levels in terms of dollar. Importers were active to purchase greenback to meet the payment requirements as the final quarter of current fiscal year has started.
According to State Bank of Pakistan (SBP) statement, foreign exchange reserves rose by 1.08 billion dollars to 11.17 billion dollars in the week ended on April 4, 2009. In the meantime, overseas Pakistanis sent a record highest amount of 739.43 million dollars as remittances in March 2009, surpassing $673.50 million received in December 2008. During the July-March period of current fiscal year, the country received 5,658.06 million dollars as overseas Pakistanis remittances.
INTER-BANK MARKET RATES: On Monday, the rupee gained 2 paisa against dollar for buying at 80.53 and 4 paisa for selling at 80.56. On Tuesday, the rupee maintained its parity with dollar for buying at 80.53 but was lower by two paisa for selling at 80.58.
On Wednesday, the rupee lost 7 paisa against dollar for buying at 80.60 and 10 paisa for selling at 80.65. On Thursday, the rupee was firm against dollar for buying and selling at 80.60 and 80.65.
On Friday, the rupee gained 6 paisa against dollar for buying at 80.54 and 8 paisa for selling at 80.57. On the weekend, the rupee shed one paisa against dollar for buying at 80.55 and 3 paisa for selling at 80.60.
OVERSEAS OUTLOOK FOR DOLLAR: In first trading day of the week, the yen hit its lowest levels in nearly six months against the dollar and the euro as investors risk appetite grew, with Asian stocks climbing after Wall Street gained late last week despite dismal US jobs data. Traders said a recovery in emerging market assets, buoyed by a global plan to help developing economies last week, added to investors appetite for riskier and higher-yielding currencies such as the Australian and New Zealand dollars.
During the second session, the yen and dollar rose as renewed nervousness about banks health stalled a rally in riskier assets, but the Australian dollar climbed after its central bank opted for a modest rate cut.
In the third Asian trading, the yen rose as falls in share prices and worries about upcoming earnings results for big US companies prompted investors to flock to its perceived safety.
The yen showed limited reaction to news that Japans current account surplus halved in February from a year earlier as the global financial crisis took its toll on Japanese exports. During fourth session, the yen drifted lower against the dollar, eating into some of its gains made the previous day, but market activity slowed ahead of the Easter holiday weekend.
Volatility in stock markets has been buffeting investors risk appetite, prompting them to cut bets built in recent weeks on higher-yielding currencies like the Australian dollar and helping the yen recover from multi-month lows hit this week.
During final Asian session, the euro slipped to its lowest in almost a month against the dollar, dented by holiday trade and a view the European Central Bank may be edging closer to unconventional easing, while the greenback lost early buoyancy against the yen.
OPEN MARKET RATES: On April 6, the rupee shed 5 paisa against dollar for buying at 80.45 but gained 10 paisa for selling at 80.70. The rupee gained 50 paisa against euro for buying and selling at Rs 108.50 and Rs 109.50.
On April 7, the rupee was lower by 10 paisa versus dollar for buying at 80.55 and five paisa at 80.65 for selling. The rupee staged a smart recovery against euro by gaining Rs 1.30 for buying and selling at Rs 107.20 and Rs 108.20, respectively.
On April 8, the rupee shed 5 paisa against dollar for buying at 80.60 and 10 paisa for selling at 80.75. The rupee gained Rs 1.85 for buying and selling in terms of euro at Rs 105.35 and Rs 106.35.
On April 9, the rupee lost 10 paisa against dollar for buying at 80.70 and 5 paisa for selling at 80.80. The rupee lost Rs 1.15 versus the euro for buying and selling at Rs 106.50 and Rs 107.50. On April 10, the rupee was unchanged versus dollar for buying at 80.70 while it shed 5 paisa for selling at 80.85. The rupee gaining Rs 1.50 versus euro for buying and selling at Rs 105.00 and Rs 106.00. On April 11, the rupee lost 10 paisa in terms of dollar for buying at 80.80 and 15 paisa for selling at 81.00. Versus euro, the rupee lost Re one for buying and selling at Rs 106.00 and Rs 107.00.