A modest recovery was seen on the money market as supply of dollars improved slightly during the week ended on September 1, 2012. In the interbank market, the rupee picked up 30 paisa in terms of dollar for buying at 94.50 and the national currency gained 29 paisa for selling at 94.55.
On the open market the national currency rose by 25 paisa against dollar for buying and selling at 94.65 and 94.85. The rupee, however, shed 20 paisa in relation to euro for buying at Rs 118.20 and Rs 119.20.
The rupee recovered modestly against dollar amid slight improvement in supply of dollars. It was observed that in the beginning sessions, the rupee dropped modestly due to strong demand for dollars to clear payments.
If dollar demand emerges, it is most likely that the rupee may come under pressure in the coming days otherwise, the rupee will trade in a narrow range against dollar.
INTER-BANK MARKET RATES: On Monday, the rupee held the weekend level versus dollar for buying and selling at 94.80 and 94.84.
On Tuesday the rupee retained its overnight level at 94.80 while the national currency inched down by one paisa for selling at 94.85.
On Wednesday the rupee picked up four paisa against dollar for buying at 94.76 and it also gained five paisa for selling at 94.80.
On Thursday the rupee gained 20 paisa against dollar in a single day rally for buying and selling at 94.56 and 94.60.
On Friday the rupee picked up six paisa in relation to dollar for buying at 94.50 and the national currency gained five paisa for selling at 94.55.
OPEN MARKET RATES: On August 27, the rupee was easier against dollar, shedding 10 paisa for buying and selling at 94.90 and 95.10. The rupee did not show any change against euro for buying at Rs 118.00 while the rupee gained 30 paisa for selling at Rs 118.70.
On August 28, the rupee managed to gain modestly against dollar for buying and selling at 94.75 and 94.95. The rupee did not show any change against euro for buying at Rs 118.00, the rupee shed 30 paisa for selling at Rs 119.00.
On August 29, the rupee was up by five paisa in relation to dollar for buying and selling at 94.70 and 94.90. The rupee shed 20 paisa versus euro for buying at Rs 118.20 and Rs 119.20.
On August 30, the rupee was unchanged in relation to dollar for buying and selling at 94.70 and 94.90. The rupee appreciated by 40 paisa versus euro for buying at Rs 117.80 and Rs 118.80.
On August 31, the rupee inched up after gaining five paisa against dollar for buying and selling at 94.65 and 94.85. The rupee rose by 20 paisa in relation to euro for buying and selling at Rs 118.00 and Rs 119.00.
On September 1, the rupee firmly held its overnight level in terms of dollar for buying and selling at 94.65 and 94.85. The rupee shed 20 paisa versus euro for buying and selling at Rs 118.20 and Rs 119.20.
OVERSEAS OUTLOOK FOR DOLLARS: In the first Asian trade euro inched lower against dollar on Monday, taking a breather after last week's rally, with its upside seen capped ahead of major euro zone events in the next few weeks.
While the euro could find support before US Federal Reserve Chairman Ben Bernanke's speech at an annual symposium in Jackson Hole, Wyoming on Friday, it may struggle to break above a recent seven-week high in the near term.
Inter bank buy/sell rates for taka against dollar on Monday:
81.60-81.72 (previous 81.45-81.60). Call Money Rates: 12.00-12.00 percent (previous 06.50-14.00 percent.
The dollar was trading versus the Indian rupee at 55.65, the greenback at 3.1105 in terms of the Malaysian ringgit and the US currency was at 6.356 against the Chinese yuan.
In the second Asian trade euro sagged against dollar while yen gained broadly as market players trimmed their long positions in risk currencies ahead of a central bankers' meeting later in the week.
Inter bank buy/sell rates for taka against dollar on Tuesday:
81.70-81.72 (previous 81.60-81.72). Call Money Rates: 08.00-10.75 percent (previous 12.00-12.00 percent).
The dollar was available versus the Indian rupee at 55.78, the greenback was trading in terms of the Malaysian ringgit at 3.1205 and dollar was at 6.3570 in relation to the Chinese yuan.
In third Asian trade euro steadied near its seven-week peak, after getting swept higher by a wave of short covering overnight, while the Australian dollar languished at one-month lows on persisting worries about Chinese growth.
The news that European Central Bank President Mario Draghi was too busy to attend Friday's Jackson Hole meeting of central bankers renewed hopes he could announce a long-awaited plan to tackle the region's debt crisis at the ECB's September 6 policy meeting.
Inter bank buy/sell rates for taka against dollar on Wednesday: 81.70-81.72 (previous 81.70-81.72). Call Money Rates: 08.00-10.00 percent (previous 07.00-11.75 percent).
The dollar was trading against the Indian rupee 55.66, the greenback was at 3.1200 in terms of the Malaysian ringgit and the US currency was at 6.3465 in relation to the Chinese yuan.
In the fourth Asian trade euro clawed higher versus dollar, finding support ahead of a speech by US Federal Reserve Chairman Ben Bernanke on Friday, but the Australian dollar hit a one-month low on ongoing concerns about the outlook for China.
The euro also added to its gains after Chinese Premier Wen Jiabao was quoted by state news agency Xinhua as saying China is to continue to buy EU government bonds after fully assessing risks.
Inter bank buy/sell rates for taka against dollar on Thursday: 81.70-81.72 (previous 81.70-81.72). Call Money Rates: 07.75-09.50 percent (previous 08.50-09.00 percent).
The dollar was trading against the Indian rupee at 55.66, versus the Malaysian ringgit, the greenback was 3.1270 per unit and the US currency was at 6.3507 in terms of the Chinese yuan.
In the final Asian trade euro hovered near this week's low against dollar, as the market grew nervous whether the US Federal Reserve chief will indicate the possibility of imminent monetary stimulus later in the day.
A fall in European and some other shares to four-week lows are also fraying traders' nerves after the single currency enjoyed a month-long recovery on hopes of more policy action to counter the debt crisis infecting Europe.
The dollar was trading against the Indian rupee at 55.71, the greenback was available at 55.63 in terms of the Malaysian ringgit and dollar was at 6.348 in relation to the Chinese yuan.
At the weekend dollar dropped to an eight-week low against euro and two-week low against yen on Friday after Federal Reserve Chairman Ben Bernanke said high unemployment is "a grave concern," reinforcing expectations for further monetary easing to revive growth. Bernanke, speaking at the Kansas City Fed's annual symposium in Jackson Hole, Wyoming, said the US economy faced "daunting" challenges and that the Fed would act as needed to strengthen the recovery. But he did not explicitly signal an imminent move.