THE RUPEE: further erosion

20 Dec, 2016

The rupee extended weekend's decline against the dollar on Monday in the process of trading, dealers said. Range-bound trading was seen on the inter-bank market as the rupee quoted in terms of dollar for buying and selling at Rs 104.84 and Rs 104.85 respectively, they said.
The Federal Reserve's interest rate forecasts released on Wednesday, after its widely expected rate increase, showed three more hikes in 2017, which fuelled the dollar's rise to last week's highs. The dollar index, which tracks the US currency against a basket of six major counterparts, was last down 0.2 percent at 102.720. It climbed as high as 103.560 last week.
The euro was last up slightly at $1.0457, holding above a nearly 14-year low of $1.0364 notched last week. The dollar was trading against the Indian rupee at Rs 67.78, the greenback was at 4.4770 versus the Malaysian ringgit and the US currency was 6.9443 in terms of the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Monday: 78.85-78.85 (previous 78.85-78.85).


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Open Bid Rs.107.80
Open Offer Rs.108.10
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Bid Rate Rs.104.84
Offer Rate Rs.104.85
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The trading of the US dollar resumed on its Saturday's closing of Rs 107.90 and Rs 108.10 as its buying and selling rates, respectively. In the absence of buyers' interest, the dollar registered reduction and ended at Rs 107.80, on the buying counter. However, it further climbed up to Rs 108.20 on the selling counter, said local currency dealers.
The local currency failed to hold its strength versus the pound sterling on buying side while it remained unchanged on selling side. The British currency was bought and sold at Rs 133.30 and Rs 134.00 as compared to last week's closing rates of Rs 132.20 and Rs 134.00, respectively, they added.
The dollar resumed trading at Rs 107 (buying) and Rs 107.50 (selling) against same last rate. It did not observe further change in evening session and closed at Rs 107 (buying) and Rs 107.50 (selling).
Pound Sterling opened at Rs 135 (buying) and Rs 135.10 (selling) against same last week's rate. It did not observe further change in the second session and closed at Rs 135 (buying) and Rs 135.10 (selling).

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