THE RUPEE: weak trend

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Weekly Updates - Rupee in a flash

The rupee could not come out of the weak spells, falling against the dollar and euro during the shortened week-ended on August 7, due to Eidul Fitr holidays. On the interbank market, the rupee lost 15 paisa against the dollar for buying at Rs 102.30 and the national currency fell by 17 paisa for selling at Rs 102.35.

On the open market, the rupee dropped sharply in relation to the dollar for buying and selling at Rs 102.80 and Rs 103.00. The rupee followed the same pattern in terms of the euro, losing 70 paisa for buying and selling at Rs 135.20 and Rs 135.50.

The rupee resisted sharp fall against the dollar despite the fact that there was persistent demand for the US currency. It is expected that the rupee likely to face modest slide in the coming days.

INTERBANK MARKET RATES: On Monday, the rupee continued its slide against the dollar, losing 10 paisa for buying and selling at Rs 102.15 and Rs 102.18. On Tuesday, the rupee shed 10 paisa against the dollar, losing 10 paisa for buying at Rs 102.25 and it lost 12 paisa for selling at Rs 102.30. On Wednesday, the rupee inched down against the dollar, losing five paisa for buying at Rs 102.30 and Rs 102.35.

OPEN MARKET RATES: On August 5, the rupee, however, picked up 10 paisa in relation to the dollar for buying and selling at Rs 102.20 and Rs 102.40. The rupee also rose by 25 paisa against the euro for buying and selling at Rs 134.50 and Rs 134.75. On August 6, the rupee shed its value in terms of the dollar, falling 10 paisa for buying and selling at Rs 102.30 and Rs 102.50. The rupee also dropped by 25 paisa against the euro for buying and selling at Rs 134.75 and Rs 135.00. On August 7, the rupee also lost 50 paisa versus the dollar for buying and selling at Rs 102.80 and Rs 103.00. The rupee followed same patterns, shedding 50 paisa against the euro for buying and selling at Rs 135.20 and Rs 135.50.

OVERSEAS OUTLOOK FOR US DOLLAR VS MAJOR CURRENCIES: In the first Asian trade, the New Zealand dollar skidded to a one-year low after New Zealand's major dairy exporter, Fonterra, said at the weekend it had found bacteria in some of its products that could cause botulism.

Dairy produce accounts for about a quarter of New Zealand's NZ$46 billion ($36 billion) annual export earnings, and the currency is sensitive to the fortunes of Fonterra, the world's biggest dairy exporter.

The dollar was trading against the Indian rupee at Rs 60.89, the greenback was 3.2415 in terms of the Malaysian ringgit and the US currency was at 6.1272 in relation to the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Monday: 77.75-77.76 (77.75-77.75). Call Money Rates: 08.00-08.00 percent (previous 05.40-09.00 percent).

In the second Asian trade, the Australian dollar pushed higher after Australia's central bank cut interest rates as expected and refrained from offering a clear hint that it may ease monetary policy further.

Moves in other major currencies were relatively subdued, with the euro easing 0.1 percent to $1.3247, while the US dollar edged up 0.3 percent versus the yen to 98.53 yen.

The dollar was trading against the Indian rupee at Rs 61.11, the greenback was at 3.2280 in terms of the Malaysian ringgit and the US currency was available at 6.1234 in relation to Chinese yuan.

In the third Asian trade, the dollar hit a six-week low against the yen, dented by uncertainty over when the Federal Reserve will start reducing its monetary stimulus.

The dollar came under pressure as a break of 97.50 yen sparked stop-loss selling of the greenback, and the dollar later fell to 97.09 yen on trading platform EBS, its lowest level against the yen since late June. The dollar was trading against the Indian rupee at Rs 61.31, the US currency was ravelling versus the Malaysian ringgit at 3.2525 and the greenback was at 6.122 in terms of the Chinese yuan.

Inter bank buy/sell rates for the taka against the dollar on Wednesday: 77.75-77.75 (77.75-77.76). Call Money Rates: 08.25-08.25 percent (previous 06.25-08.50 percent).

In the fourth Asian trade, the dollar slid to a seven-week low on Thursday as uncertainty over when the Federal Reserve might begin reducing its stimulus weighed on prospects for bigger yield advantages, while the Australian dollar jumped after strong July trade numbers from China, Australia's main export market.

Although the US dollar had hit a three-year high last month as investors had bet the Fed would be well ahead of other central banks in scaling back its easy money strategy, inconclusive economic data and mixed comments from the Fed in recent weeks have raised doubts over the timing.

The dollar was trading against the Indian rupee at Rs 61.08, the greenback was at 3.2530 versus the Malaysian ringgit and the US currency was at 6.117 versus in relation to the Chinese yuan.






Courtesy: BR

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