Range-bound trading was seen on the currency market as the rupee moved cautiously versus the dollar during the week, ended on August 9, 2014. In the interbank market, the rupee gained two paisa versus the dollar for buying and selling at Rs 98.86 and Rs 98.88.
In the open market, the rupee did not show any change versus the dollar for buying at Rs 98.70 while it gained 10 paisa for selling at Rs 98.80. The rupee picked up 25 paisa in relation to the euro for buying and selling at Rs 131.75 and Rs 132.00.
Some experts said that comfortable supply of dollars, helped the rupee to resist sharp fluctuation in terms of the greenback. An upward trend in remittances during the month of Ramazan, provided rupee an opportunity to move but with minor change versus the dollar, they said.
According to the State Bank's report, country's foreign exchange reserves fell to 14.306 billion dollars.
INTER-BANK MARKET RATES: On Monday, the rupee shed one paisa versus the dollar for buying at Rs 98.88 and it also fell by two paisa for selling at Rs 98.90. On Tuesday, the rupee appreciated by seven paisa in relation to the dollar for buying and selling at Rs 98.81 and Rs 98.83. On Wednesday, the rupee shed one paisa in relation to the dollar for buying and selling at Rs 98.82 and Rs 98.84.
On Thursday, the rupee shed two paisa in relation to the dollar for buying at Rs 98.84 and the national currency fell by one paisa for selling at Rs 98.85. On Friday, the rupee inched down by two paisa against the dollar for buying at Rs 98.86 and the national currency shed three paisa for selling at Rs 98.88.
OPEN MARKET RATES: On August 4, the rupee lost 20 paisa in terms of the dollar for buying and selling at Rs 98.70 and Rs 98.90. While, the rupee did not show any change versus the euro for buying and selling at Rs 132.00 and Rs 132.25.
On August 5, the rupee held the overnight level in terms of the dollar for buying and selling at Rs 98.70 and Rs 98.90. While, the rupee did not show any change versus the euro for buying and selling at Rs 132.00 and Rs 132.25.
On August 6, the rupee showed no change versus the dollar for buying and selling at Rs 98.70 and Rs 98.90. While, the rupee posted fresh gain of 70 paisa in terms of the euro for buying and selling at Rs 131.30 and Rs 131.55. On August 7, the rupee did not show any change versus the dollar for buying and selling at Rs 98.70 and Rs 98.90. While, the rupee lost 35 paisa in terms of the euro for buying and selling at Rs 131.65 and Rs 131.90.
On August 8, the rupee after depicting firmness versus the dollar, losing 10 paisa for buying and selling at Rs 98.80 and Rs 99.00. The rupee also shed the same amount in terms of the euro for buying and selling at Rs 131.75 and Rs 132.00.
On August 9, the rupee recovered 10 paisa versus the dollar for buying and selling at Rs 98.70 and Rs 98.80. The rupee maintained overnight levels in terms of the euro for buying and selling at Rs 131.75 and Rs 132.00.
OVERSEAS OUTLOOK FOR DOLARS: In the first Asian trade, the US dollar got off to a quiet start, having suffered its biggest one-day fall in nearly a month after a batch of economic data led markets to temper expectations for the start of the Federal Reserve's rate-tightening cycle.
Data released on Friday showed US jobs growth slowed in July, the unemployment rate unexpectedly edged up and inflation was restrained, a mix of figures that should give the Fed room to keep interest rates low for a while yet.
The dollar was trading against the Indian rupee at Rs 60.97, the greenback was at 3.1995 versus the Malaysian ringgit and US currency was available at 6.1772 in terms of the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Monday. 7.50-77.50 (previous 77.50-77.50). Call Money Rates: 06.50-08.25 percent (previous 06.50-08.25 percent).
In the second Asian trade, the dollar was stuck below a 10-1/2 month peak against a basket of currencies on Tuesday, taking a breather after US jobs data last week dampened speculation of an earlier-than-expected interest rate rise by the Federal Reserve. The dollar index held steady at 81.299, staying below a high of 81.573 touched last Thursday, its highest level since mid-September of last year.
The dollar was trading against the Indian rupee at Rs 60.83, the greenback was at 3.1850 in terms of the Malaysian ringgit and the US currency was available at 6.1750 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Tuesday. 77.50-77.50. (previous 77.50-77.50). Call Money Rates: 06.50-08.25 percent (previous 06.50-08.25 percent).
In the third Asian market, the euro slipped to a nine-month low, extending its losses after data showed a sharp drop in German industrial orders, while the New Zealand dollar took a hit after a fall in dairy prices. A Singapore-based trader said investor risk aversion on concerns about the tensions in Ukraine helped to bolster the dollar broadly, and weighed on the euro.
The dollar was trading against the Indian rupee at Rs 60.85, the greenback was available at 3.1970 in terms of the Malaysian ringgit and the US currency was at 6.1697 versus the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Wednesday. 77.50-77.50 (previous 77.50-77.50). Call Money Rates: 06.50-08.00 percent (previous 06.50-08.25 percent).
In the fourth Asian trade, the yen sagged against the dollar, coming under pressure on news Japan's Government Pension Investment Fund (GPIF) plans to increase its allocation to domestic equities. The dollar rose 0.3 percent to 102.40 yen, pulling away from a 1-1/2 week low near 101.76 yen set on Wednesday.
The dollar was trading against the Indian rupee at Rs 61.44, the greenback was available at 3.2110 versus the Malaysian ringgit and the US currency was at 6.1596 in relation to the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Thursday. 77.48-77.50 (previous 77.50-77.50). Call Money Rates: 06.00-08.00 percent (previous 05.25-08.00 percent).
In the final Asian trade, the dollar slipped against the safe haven yen after news that US President Barack Obama had authorised air strikes in Iraq added to simmering geopolitical tensions and sapped risk appetite.
The dollar was trading against the Indian rupee at Rs 61.65, the greenback was at 3.2140 in terms of the Malaysian ringgit and the US currency was available at 6.1570 versus the Chinese yuan.
At the week-end, the US dollar hit a one-week low against a basket of major currencies on Friday after escalating geopolitical tensions led traders to take profits on the greenback after its recent strength. The United States launched its first air strike against Iraq since American troops withdrew from the country in 2011. Fighting has also resumed in Gaza between Palestinian militants and Israel, while the conflict between Russia and Ukraine remained on investors' radar.