THE RUPEE: easier trend

24 Aug, 2015

The rupee depreciated versus the dollar on the local currency market during the week ended on August 22, 2015. In the interbank market, the rupee shed seven paisas against the dollar for buying and selling at Rs 102.02 and Rs 102.04.
In the open market, the rupee drifted lower in terms of the dollar for buying and selling at Rs 103.50 and Rs 103.70. The rupee also fell sharply versus the euro for buying and selling at Rs 117.20 and Rs 118.20.
Since the Chinese currency devalued, the rupee started showing weakness with gradual pace, experts said. At a meeting, on Friday, the State Bank of Pakistan (SBP) took notice of dollar appreciation and directed the money changers to correct their ways in the right direction, improve performance and come to explain their views in the next meeting.
INTER-BANK MARKET RATES: On Monday, the rupee lost 11 paisas in relation to the dollar for buying and selling at Rs 101.95 and Rs 101.97. On Tuesday, the rupee depicted no change in relation to the dollar for buying and selling at Rs 101.95 and Rs 101.97.
On Wednesday, the rupee gained six paisas in relation to the dollar for buying and selling at Rs 101.89 and Rs 101.90. On Thursday, the rupee shed three paisas in relation to the dollar for buying and selling at Rs 101.92 and Rs 101.94. on Friday, the rupee lost 10 paisas in relation to the dollar for buying and selling at Rs 102.02 and Rs 102.04.
OPEN MARKET RATES: On August 17, the rupee followed the same patter against the dollar, losing 20 paisas for buying and selling at Rs 103.20 and Rs 103.40, respectively. The local currency, however, gained 10 paisas versus the euro for buying and selling at Rs 114.00 and Rs 115.00. On August 18, the rupee shed 10 paisas versus the dollar for buying and selling at Rs 103.30 and Rs 103.50. The local currency, however, gained 20 paisas versus the euro for buying and selling at Rs 113.80 and Rs 114.80.
On August 19, the rupee did not show any variation versus the dollar for buying and selling at Rs 103.30 and Rs 103.50. The local currency, however, shed 20 paisas versus the euro for buying and selling at Rs 114.00 and Rs 115.00.
On August 20, the rupee followed same track in terms of the dollar, losing 20 paisas versus the dollar for buying and selling at Rs 103.50 and Rs 103.70. The local currency also lost Rs 1.25 in relation to the euro for buying and selling at Rs 115.25 and Rs 116.25. On August 21, the rupee held the overnight levels in terms of the dollar for buying and selling at Rs 103.50 and Rs 103.70. The local currency Re one in relation to the euro for buying and selling at Rs 116.25 and Rs 117.25. On August 22, the rupee sustained overnight levels versus the dollar for buying and selling at Rs 103.50 and Rs 103.70. The rupee lost further 95 paisas in relation to the euro for buying and selling at Rs 117.20 and Rs 118.20.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the dollar held firm as traders looked to prospects of a US rate hike next month, while the yen was little moved after data showed Japan's economy shrank in the April-June quarter.
The dollar's index against a basket of six major currencies edged up slightly to 96.716, extending its recovery from a one-month low of 95.926 hit on Wednesday.
The US currency is slowly recovering from the damage it suffered last week after a surprise decision by the People's Bank of China to devalue the yuan.
The dollar was trading against the Indian rupee at Rs 65.22, the greenback was at 4.0950 in the terms of the Malaysian ringgit and the US currency was available at 6.3952 versus the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Monday: 77.80-77.80 (previous 77.80-77.80). Call Money Rates: 05.30-6.50 percent (Previous 05.25-06.50 percent).
In the second Asian trade, the dollar edged higher, as focus shifted back to the prospect of the US Federal Reserve raising interest rates amid receding concerns that last week's devaluation of China's yuan could spark a global currency war.
Against a basket of major currencies, the dollar rose 0.2 percent to 96.963, pulling away from a one-month low of 95.926 set last week when Beijing's surprise move dented expectations of the Fed raising rates in September.
The dollar was trading against the Indian rupee at Rs 65.32, the US currency was available at 4.1170 in terms of the Malaysian ringgit and the greenback was at 6.411 in relation to the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Tuesday: 77.80-77.80 (previous 77.80-77.80). Call Money Rates: 05.30-6.50 percent (Previous 05.25-06.50 percent).
In the third Asian trade, the US dollar eased 0.2 percent against a basket of major currencies to 96.861, taking a breather after having risen over the past several sessions. Against the yen, the dollar held steady at 124.35 yen. The euro rose 0.3 percent to $1.1050, inching away from a one-week low near $1.1016 that had been set on Tuesday.
The dollar was available against the Indian rupee at Rs 65.28, the greenback was at 4.1070 in terms of the Malaysian ringgit and the US currency was at 6.3991 in relation to the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Wednesday: 77.80-77.80 (previous 77.80-77.80). Call Money Rates: 05.30-6.50 percent (Previous 05.30-06.50 percent).
In the fourth Asian trade, the US dollar was on the defensive against the euro and yen, having pulled back sharply after Federal Reserve meeting minutes suggested policymakers were in no hurry to raise interest rates.
The dollar was trading against the Indian rupee at Rs 65.23, the greenback was at 4.1120 in terms of the Malaysian ringgit and the US currency was at 6.395 versus the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Thursday:
77.80-77.80 (previous 77.80-77.80). Call Money Rates: 05.25-6.50 percent (Previous 05.25-06.50 percent).
In the final Asian trade, the euro rose amid signs of a retreat from risky assets and scaled a 17-month peak against the Australian dollar. The single currency rose to its highest level since March 2014 versus the Australian dollar at 1.5464.
Against the greenback, the euro rose 0.4 percent to $1.1286. The euro had risen as high as $1.1290 as of 0321 GMT, its highest level in about two months.
The dollar was trading against the Indian rupee at Rs 65.83, the greenback was at 4.1820 versus the Malaysian ringgit and the US currency was at 6.395 in terms of the Chinese yuan.
At the week-end, the dollar tumbled more than 1 percent against the euro and the yen on Friday as strikingly weak Chinese factory data fanned global growth worries and cooled betting that the Federal Reserve will raise US interest rates next month.
Chinese manufacturing activity shrank at its fastest pace in 6-1/2 years in August, compounding investor concerns over slowing growth in the world's No. 2 economy and ignited sell-offs in equities and commodities.

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