THE RUPEE: modest recovery

08 Sep, 2014

The rupee, somehow, managed to recover modestly against the dollar on the money market during the week, ended on September 6, 2014. In the interbank market, the national currency picked up 35 paisa in relation to the dollar for buying and selling at Rs 102.15 and Rs 102.10. In the open market, the rupee rose by 10 paisa versus the dollar for buying and selling at Rs 101.90 and Rs 102.10, the rupee also gained Rs 1.25 in terms of the euro for buying and selling at Rs 132.00 and Rs 132.25.
Commenting on the trend in the market, some analysts observed that in the beginning sessions of the week, volatility dominated the market as a result of political instability in the country.
Prolonged protests and confrontations between the government and opposition parties causing huge losses to the country, they said.
Hopefully, issues and other matters will settle down in time to come, they added.
INTER-BANK MARKET RATES: On Monday, the rupee could not hold its firmness against the dollar, losing 75 paisa for buying at Rs 102.50 and it also lost 65 for selling at Rs 102.55. On Tuesday, the rupee managed to resist sharp fall in relation to the dollar, shedding 18 paisa for buying at Rs 102.68 and it also lost 15 paisa for selling at Rs 102.70, they said.
On Wednesday, the rupee picked up 18-paisa in relation to the dollar for buying at Rs 102.50 and it also rose by 15-paisa for selling at Rs 102.55. On Thursday, the rupee picked up 30 paisa versus the dollar for buying and selling at Rs 102.20 and Rs 102.35. On Friday, the rupee gained five paisa versus the dollar for buying at Rs 102.15 and it also rose by 17 paisa for selling at Rs 102.18.
OPEN MARKET RATES: On September 1, the rupee also fell by 50 paisa in relation to the dollar for buying and selling at Rs 102.00 and Rs 102.20. The rupee also depreciated by 75 paisa against the euro for buying and selling at Rs 133.50 and Rs 133.75.
On September 2, the rupee, however, gained 35 paisa versus the dollar for buying and selling at Rs 101.65 and Rs 101.85. The rupee sustained it's overnight levels in terms of the euro for buying and selling at Rs 133.50 and Rs 133.75.
On September 3, the rupee, however, shed five-paisa versus the dollar for buying and selling at Rs 101.70 and Rs 101.90. The rupee fell in terms of the euro, losing 50-paisa for buying and selling at Rs 134.50 and Rs 134.25.
On September 4, the rupee also gained 10 paisa in terms of the dollar for buying and selling at Rs 101.60 and Rs 101.80. The rupee appreciated sharply in relation to the euro, rising Rs 2.25 for buying and selling at Rs 132.25 and Rs 132.50.
On September five, the rupee held its overnight levels in terms of the dollar for buying and selling at Rs 101.60 and Rs 101.80. The rupee extended its gains in relation to the euro, picking up further 25 paisa for buying and selling at Rs 132.00 and Rs 132.25.
On September 6, the rupee drifted lower versus the dollar, shedding 30 paisa for buying and selling at Rs 101.90 and Rs 102.10. The rupee managed to hold last levels in relation to the euro for buying and selling at Rs 132.00 and Rs 132.25.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the euro hit a fresh one-year low, as heightened worries about the crisis in Ukraine kept the currency on the defensive ahead of a European Central Bank policy meeting later this week. The euro fell as far as $1.3119, reaching lows not seen since early September 2013. It last traded at $1.3125, down 0.1 percent on the day.
The dollar was trading against the Indian rupee at Rs 60.49, the greenback was at 3.1500 in terms of the Malaysian ringgit and the US currency was available at 6.1405 versus the Chinese yuan.
Inter bank buy-sell rates for the taka against the dollar on Sunday. 77.40-77.40 (previous 77.40-77.40). Call Money Rates: 05.50-06.75 percent (Previous 05.40-06.75 percent).
In the second Asian trade, the dollar took advantage of thin conditions to overcome an options barrier and ascend to its highest level since January against the yen on Tuesday, while the languishing euro plumbed one-year lows against the greenback on expectations of easier euro zone policy ahead. The moves followed a mostly aimless session overnight with market activity subdued due to the Labour Day holiday in the United States.
The dollar was trading against the Indian rupee at Rs 60.61, the greenback was at 3.1680 in terms of the Malaysian ringgit and the US currency was at 6.1455 versus the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Tuesday. 77.40-77.40 (previous 77.40-77.40). Call Money Rates: 05.50-06.75 percent (Previous 05.45-06.75 percent).
In the third Asian trade, the dollar hovered at 14-month highs against a basket of major currencies on Wednesday, underpinned by stronger-than-expected US data and a resulting rise in Treasury yields. The greenback received further support from a sell-off in the yen, which neared a six-year low against its US counterpart, and in sterling, pummelled by opinion polls suggesting growing support for Scottish independence in a referendum later this month.
The dollar was trading against the Indian rupee at Rs 60.59, the greenback was at 3.1870 in relation to the Malaysian ringgit and the US currency was available at 6.1451 versus the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Wednesday. 77.40-77.41 (previous 77.40-77.40). Call Money Rates: 05.50-06.75 percent (Previous 05.50-06.75 percent.
In the fourth Asian trade, the euro held steady versus the dollar on Thursday, having recovered from one-year lows set earlier this week as investors repositioned ahead of the European Central Bank policy review. News of a cease-fire plan in eastern Ukraine further shored up the common currency, although this is now in doubt after Ukraine's prime minister dismissed the proposal outlined by President Vladimir Putin.
The dollar was trading against the Indian rupee at Rs 60.47, the greenback was at 3.1760 versus the Malaysian ringgit and the US currency was at 6.1351 in terms of the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Thursday. 77.40-77.40 (previous 77.40-77.41). Call Money Rates: 05.50-06.75 percent (Previous 05.50-06.75 percent). In the final Asian trade, the euro held steady versus the dollar on Thursday, having recovered from one-year lows set earlier this week as investors repositioned ahead of the European Central Bank policy review. News of a cease-fire plan in eastern Ukraine further shored up the common currency, although this is now in doubt after Ukraine's prime minister dismissed the proposal outlined by President Vladimir Putin.
The dollar was trading against the Indian rupee at Rs 60.47, the greenback was at 3.1760 versus the Malaysian ringgit and the US currency was at 6.1351 in terms of the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Thursday. 77.40-77.40 (previous 77.40-77.41). Call Money Rates: 05.50-06.75 percent (Previous 05.50-06.75 percent). At the week-end, the dollar slipped after data showed US employers added the fewest jobs in eight months, eroding confidence in the economy and reviving bets that the Federal Reserve might leave interest rates near zero for longer than anticipated. The US Labour Department said non-farm payrolls grew by 142,000 last month, far below the 225,000 forecast by analysts polled by Reuters.

Read Comments