The rupee fluctuated marginally against the US dollar and euro during the week ended on June 1. In the interbank market, the rupee shed two paisa against dollar, selling at 98.52 on buying counters while it dropped by three paisa on selling counters, closing at 98.55. In the open market, the rupee gained 10 paisa versus the dollar, buying and selling at 99.70 and 99.90, respectively.
The local currency shed 25 paisa versus the euro, buying and selling at Rs 129.00 and Rs 129.25, respectively.
The rupee managed to hold firm against the dollar and euro mainly because of a balanced demand and supply position, expertd said. They said that rupee may not fluctuate wildly against the dollar ahead of the announcement of the budget. They said that the new government might take bold steps to normalise trade activity in the country.
Some experts said that an acute energy crisis, falling tax revenue, rising debt, fiscal and current account deficit, sluggish growth and deteriorating security condition "will be key major issues facing the new government".
INTER-BANK MARKET RATES: On Monday, rupee could not retain its firmness against the dollar, losing 16 paisa, buying and selling at 98.50 and 98.52, respectively.
On Tuesday, the rupee managed to recover two paisa versus the dollar, buying and selling at 98.48 and 98.50, respectively.
On Wednesday, the rupee again gained two paisa against the dollar, buying at 98.46. The local currency also shed one paisa on the selling counters, closing at 98.49.
On Thursday, the rupee drifted lower against the dollar, shedding five paisa, with a buying price of 98.51. It also shed four paisa at selling counters, settling at 98.53.
The national currency extended its slide against the dollar on Friday, the last day of the trading week, shedding one paisa in buying rate, closing at 98.52 and two paisa in selling rate, settling at 98.55, they said.
OPEN MARKET RATES: On May 27, the rupee followed same pattern, shedding 10 paisa against the greenback, posting a buying rate of 99.80. The selling value of the domestic currency remained unchanged at 100.00. The rupee was firm in terms of euro, posting buying and selling values of Rs 128.75 and Rs 129.00, respectively.
On May 28, the rupee moved up slightly against the dollar, posting buying and selling values of 99.75 and 99.95, respectively. Against the euro, the rupee lost selling 50 paisa at buying and selling counters, posting values of Rs 129.00 and Rs 129.25, respectively.
On May 29, the rupee held firm versus the dollar, buying and selling at 99.75 and 99.95, respectively. The value of rupee was firm against the euro, buying at Rs 128.75 while its selling value posted an increase of five paisa at Rs 128.95.
On May 30, the rupee rose by five by five paisa against the dollar for buying and selling at 99.70 and 99.90, respectively.
The rupee also held firm against the euro, buying and selling at Rs 129.00 and Rs 129.25, respectively.
On May 31, the rupee also held firm against the dollar, buying and selling at 99.70 and 99.90, respectively.
On June 1, the rupee also remained unchanged versus the dollar at 99.70 and 99.90. It also maintained its price level in terms of the euro, buying and selling at Rs 129.00 and Rs 129.25, respectively.
OVERSEAS OUTLOOK FOR DOLLARS: In the first Asian trade, the dollar lost ground against the yen on Monday as another steep fall in Japanese equities prompted investors to unwind their dollar hedges and head for bonds, extending a trend last Thursday that produced the pair's biggest weekly drop in a year.
The greenback last bought 101.04 yen after choppy trade that saw it climb as high as 101.82 in the early morning session and as low as 100.79 as the Nikkei dropped 4 percent, though shares later narrowed their losses. Inter bank buy/sell rates for the taka against the dollar on Monday.
77.76-77.78 (77.78-77.7850). Call Money Rates: 05.30-07.00 percent (previous 05.30-08.00 percent). The dollar was trading against the Indian rupee at Rs 55.60, the greenback was available at 3.0270 in terms of the Malaysian ringgit and the greenback was at 6.1234 versus Chinese yuan.
In the second Asian trade, the yen tumbled as Japanese shares appeared to be stabilising after sharp losses and extreme volatility in the past few sessions.
Inter bank buy/sell rates for the taka against the dollar on Tuesday. 77.75-77.7510 (77.76-77.78). Call Money Rates: 05.30-07.75 percent (previous 05.30-07.00 percent). The dollar was trading against the Indian rupee at Rs 55.69, the greenback was at 3.0355 versus the Malaysian ringgit and the US currency was at 6.1225 versus Chinese yuan.
In the fourth Asian trade, the yen strengthened on Wednesday as Japanese stocks fell, capping the dollar's gains against a basket of currencies as it hovered near a three-year high.
The dollar lost 0.1 percent to 102.26 yen, locking step once again with the Nikkei, which struggled to stay above water in a choppy session. It finally squeezed out a 0.1 percent gain on the day.
The rupee moved both ways in relation to the dollar on the currency market on Thursday in process of trading, dealers said.
In the fourth Asian trade, the dollar remained under pressure against the yen as Japanese shares took another sharp tumble, pushing investors to unwind their dollar-hedges on the Nikkei and head for the safe-haven yen. The greenback last bought 100.80 yen after hitting 100.56, its lowest since May 10.
The dollar was trading against the Indian rupee at Rs 56.22, the greenback was available at 3.0710 versus the Malaysian ringgti and the US currency was at 6.1294 in terms of the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Thursday. 77.75-77.76 (77.75-77.76). Call Money Rates: 05.30-07.00 percent (previous 05.30-07.50 percent).
In the final Asian trade, the US dollar hovered near a three-week low against the euro on Friday after unexpectedly weak US economic data dampened expectations that the Federal Reserve will reduce its monetary stimulus soon.
The yen clung near three-week highs against the dollar as Japanese shares remained vulnerable, gaining limited traction from a slew of generally positive Japanese economic data.
The dollar was trading against the Indian rupee at Rs 56.60, the greenback was available at 3.0930 versus the Malaysian ringgit and the US currency was at 6.1345 in terms of the Chinese yuan. At the week-end, the dollar firmed to post an eighth straight month of gains against the yen as upbeat US economic data reinforced the view that the Federal Reserve could pare back its monetary stimulus sooner than expected.
The euro, meanwhile, fell against the dollar and yen, hurt by euro zone data, showing record high unemployment and low inflation.