Forex Research -
Open Market Comments
Rupee remained under pressure versus greenback in the kerb dealings this week amid dollar’s demand in the local market. However, US dollar remained weak in the international market due to economic bleeding extended in February with 651,000 jobs lost and the unemployment rate surging to 8.1 per cent, according to data on Friday highlighting an ever-deepening recession. The US dollar opened new week’s trading at Rs.79/80, showed some dips in the middle but had recovered them sharply and was trading at Rs.80/00 at close of markets on Saturday. Thus, rupee gave up 0/20 paisas versus dollar in the kerb market. In the international market, the dollar against major counterparts as the pace of U.S. job losses slowed in February, reducing demand for the currencies as a refuge from global economic turmoil. The dollar declined 0.8 percent to $1.2639 per euro at 4 p.m. in New York, from $1.2540 yesterday. It reached $1.2754, the weakest level since Feb. 26. “The big positioning in the market is now long dollars,” said Steven Englander, chief U.S. currency strategist at Barclays Capital Inc. in New York. “It made people a bit nervous that there was going to be a shift in sentiment for the dollar. That makes the dollar vulnerable to weaken.” A long position is a bet a currency will appreciate.