THE RUPEE: divergent trend

19 Nov, 2012

The rupee-dollar parity rates moved both ways against the dollar during the week ended on November 17. In the interbank market, the rupee gained seven paisa in relation to the dollar for buying at 95.83 and it also picked up nine paisa for selling at 95.86.
In the open market, the rupee lost 20 paisa versus the dollar for buying and selling at 96.60 and 96.80, the national currency retained overnight levels in terms of the euro for buying and selling at Rs 122.00 and Rs 123.
In the absence of dollars' comfortable supply, the rupee is heading towards 97 mark with gradual pace in the open market. Only remittances are not sufficient to give a boost to the rupee, in the absence of foreign investment, the foreign exchange reserves are coming down, it is necessary for the health of country's economy that that the government must take hard but inevitable measures to improve law and order situation and ailing economic condition. Peace and stability on both economic and political fronts can restore business friendly atmosphere in the country along with confidence of the foreign investors.
INTER-BANK MARKET RATES: On Monday, the rupee depreciated by 10 paisa in relation to the dollar for buying at 95.90 and it shed five paisa for selling at 95.95. On Tuesday, the rupee was almost unchanged in terms of the dollar for buying and selling at 95.90 and 95.96. On Wednesday, the rupee shed two paisa in relation to the dollar for buying at Rs 95.92, while it inched up by one paisa for selling at 95.95. On Thursday, the rupee gained nine paisa versus the dollar for buying at 95.83 and it rose by 10 paisa for selling at 95.85.
On Friday, the rupee was unchanged in relation to the dollar for buying at Rs 95.83 while it shed one paisa for selling at 95.86.
OPEN MARKET RATES: On November 12, the rupee maintained its week-end's levels against the dollar for buying and selling at 96.30 and 96.50. While, the rupee lost 50 paisa versus the euro for buying and selling at Rs 122.00 and Rs 123.00.
On November 13, the rupee fell slightly against the dollar for buying and selling at 96.40 and 96.60, while the rupee gained 50 paisa versus the euro for buying and selling at Rs 121.50 and Rs 122.50.
On November 14, the rupee maintained its overnight levels against the dollar for buying and selling at 96.40 and 96.60. The rupee gave up 50 paisa in terms of the euro for buying and selling at Rs 122.00 and Rs 123.00.
On November 15, the rupee maintained its levels for the third day against the dollar for buying and selling at 96.40 and 96.60, while the rupee lost 20 paisa in terms of the euro for buying and selling at Rs 122.20 and Rs 123.20.
On November 16, the rupee was down by 10 paisa against the dollar buying and selling at 96.50 and 96.70. The rupee recovered overnight losses after gaining 20 paisa in terms of the euro for buying and selling at Rs 122.00 and Rs 123.00.
On November 17, the rupee was down by 10 paisa against the dollar buying and selling at 96.60 and 96.80. The rupee maintained overnight levels in terms of the euro for euro for buying and selling at Rs 122.00 and Rs 123.00, they added.
WORLD VALUE OF DOLLAR: In the first Asian trade, the euro held above a two-month low after Greece's ruling coalition secured enough votes in parliament on Sunday to approve the 2013 budget law, but its potential for gains was thought to be limited by the impending meeting of euro zone finance ministers later in the session.
Deputies allied to Greece's three-party government approved the budget with a comfortable majority of parliament's 300 seats.
The dollar was trading against the Indian rupee at Rs 54.92, the greenback was trading versus the Malaysian ringgit at 3.0585 and the US currency was at 6.2292 in terms of the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Monday. 81.70-81.75 (previous 81.68-81.70): Call Money Rates: 09.00-09.00 percent (previous 08.60-09.50 percent).
In the second Asian trading, the euro dipped to a two-month low against the dollar after the euro zone and the International Monetary Fund failed to agree on a long-term plan to reduce Greece's debt, preventing disbursement of immediate aid to Athens.
The currency was also bruised by the broader risk averse mood as Chinese shares tumbled following state media reports that government housing market curbs will remain in place, sapping optimism that the world's second-largest economy was regaining traction.
The dollar was trading against the Indian rupee at Rs 54.88, the greenback was at 3.0625 in terms of the Malaysian ringgit and the US currency was at 6.2262 in relation to the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Tuesday: 81.71-81.75 (previous 81.70-81.75). Call Money Rates: 09.00-09.00 percent (previous 08.00-09.50 percent).
In the third Asian trade, the euro hovered near a two-month low, hurt by uncertainty over Greece and weak German economic sentiment data that highlighted the growing pain in stronger European economies from the region's protracted debt crisis.
The euro edged up 0.2 percent to $1.2722, but was still not too far from a two-month low of $1.2661 set on Tuesday, when the euro slipped on a weak German ZEW sentiment survey.
The dollar was trading against the India rupee at Rs 54.88, the greenback was available versus the Malaysian ringgit at 3.0605 and the greenback was at 6.225 in terms of the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Wednesday: 81.73-81.75 (previous 81.71-81.75). Call Money Rates: 07.75-08.50 percent (previous 07.50-09.00 percent).
In the fourth Asian trade, the yen hit a 6-1/2 month low against the dollar on Thursday after the head of Japan's main opposition party, the frontrunner in next month's election, called for aggressive monetary easing by the Bank of Japan to support growth.
Shinzo Abe, the head of the Liberal Democratic Party, said he wants the BOJ to set interest rates at zero or below zero to enhance lending.
The dollar was trading against the Indian rupee at Rs 54.99, the greenback was at 3.0600 in terms of the Malaysian ringgit and the US currency was at 6.2277 versus the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Thursday: 81.68-81.75 (previous 81.73-81.75). Call Money Rates: 07.75-08.00 percent (previous 07.50-09.00 percent).
In the final Asian trade, the yen steadied on Friday after plunging to a six-and-a-half month low against the dollar in the previous session on expectations a new Japanese government could push the Bank of Japan to adopt interest rates of zero or below.
Strategists remained divided over whether the Japanese currency has entered a new weaker phase against its major counterparts, or whether its dramatic drop this week will prove to be an aberration.
The dollar was available against the Indian rupee at Rs 54.99, the US currency was trading at 3.0760 in the terms of the Malaysian ringgit and the greenback was trading versus the Chinese yuan at 6.237.
At the week-end, the yen recovered slightly but was still on track to post it worst weekly performance against the dollar since mid-February as expectations of aggressive monetary easing from the Bank of Japan diminished the currency's appeal.
The euro, meanwhile, continued to struggle on concerns about Greece's fiscal problems and Europe's stagnant economy.

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