On the open market, the rupee rose by 10 paisa versus dollar for buying at 86.10 but was unchanged for selling at 86.30. The rupee gained Rs 1.79 in relation to euro for buying at Rs 121.73 and Rs 1.27 for selling at Rs 122.23.
Despite extended buying of dollars by importers, the rupee halted sharp decline, but is most likely to shed more on rising demand for US currency. The dollar may appreciate versus the rupee during the next week or in the beginning sessions of new fiscal year 2011-12, but if dollar supply improves in the coming days, the rupee may manage to shed losses.
According to the State Bank of Pakistan (SBP), the country's foreign exchange reserves were at 17.52 billion dollars, and during the 11 months of outgoing fiscal year, the foreign direct investment (FDI) dropped by 30 percent, which may cause dearth of dollars in the coming days.
INTER-BANK MARKET: On Monday, the rupee rose by seven paisa against dollar for buying at 85.78 and five paisa for selling at 85.83. On Tuesday, the rupee gained 11 paisa against dollar for buying at 85.67 and 12 paisa for selling at 85.71.
On Wednesday, the rupee rose by 13 paisa in relation to dollar for buying at 85.54 and 14 paisa for selling at 85.57.
On Thursday, the rupee lost 18 paisa for buying and selling at 85.72 and 85.75.
On Friday, the rupee lost 8 paisa to dollar for buying at 85.80 and 10 paisa for selling at 85.85.
On Saturday, the rupee shed 15 paisa in relation to dollar for buying at 85.95 and 14 paisa for selling at 85.99.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the euro dipped as euro zone finance ministers postponed a decision on extending the next tranche of Greek bailout funds, with recent demand for euro put options suggesting investors were bracing for further weakness.
Euro zone finance ministers said they expected 12 billion euros in emergency loans to Greece to be paid by mid-July, but added that disbursement would depend on the Greek parliament first passing laws on fiscal reforms.
Interbank buy/sell rates for taka against dollar were 73.95/74.02 (previous 73.90/73.99) and Call Money Rates 12.00 percent (previous 12.00 percent). The yuan ended slightly weaker against dollar with rises capped by banks' corporate clients bidding for large amounts of dollars.
In the second Asian trade, the euro clung to small gains as market players bet that euro zone would cobble together measures to prevent Greece from defaulting on its debt, though its advance could stall ahead of a confidence vote on the government in the Greek parliament.
The euro was lifted by short-covering after Klaus Regling, chief of the European Financial Stability Facility, said on Monday that the bailout fund's guarantees would be raised to 780 billion euros from the 440 billion that has just been rubber stamped by ministers.
Interbank buy/sell rates for taka against dollar were 73.95/74.05 (previous 73.95/74.02) and Call Money Rates 9.00-12.00 percent (previous 12.00 percent).
The yuan ended up against dollar, just off an all-time high after the People's Bank Of China set a record high mid-point, but huge dollar demand around the end of the half year capped a sharper rise.
Indian rupee was trading at Rs 45.00, and Malaysian ringgit at 3.0350 in terms of dollar.
In the third Asian trade, the euro ran into profit-taking after the Greek government won a vote of confidence, as expected, but further losses may be limited as the market's focus turns to the Federal Reserve and its comments on the slowing US economy.
Interbank buy/sell rates for taka against dollar were 73.97/74.07 (previous 73.95/74.05) and Call Money Rates: 9.00-12.00 percent (previous 9.00-12.00 percent).
The yuan hit a record high against dollar in late trade after the People's Bank of China set its mid-point at an all-time for the fourth straight day. The yuan may rise further in the near-term as China continues to use the currency to help fight rising price pressures, dealers said. Indian rupee was available at Rs 44.84 versus dollar and Malaysian ringgit at 3.0275.
In the fourth Asian trade, the dollar extended its gains from the previous day as sovereign Asian players bought it back after the Federal Reserve confirmed it was ceasing its $600 billion bond-buying programme at the end of June and gave no hint of further economic stimulus.
Sterling slumped to three-month lows against greenback after the Bank of England raised the prospect of offering more stimulus, in contrast to the Fed.
The yuan ended down, slightly, against dollar after the People's Bank of China set a weaker mid-point, tracking a stronger dollar index.
Indian rupee was trading at Rs 44.89 versus dollar, Malaysian ringgit was available at 3.0315, and Chinese yuan was at 6.4696 in terms of US currency.
In the final Asian trade, the euro held steady against dollar as a short-covering bounce stalled on lingering uncertainty about the fate of Greece's austerity plan, with signs of money market strains also seen as a potential downside risk for the single currency.
The euro bounced off the previous day's low following news that Greece had reached a deal with international lenders on an austerity plan that would bring it one step closer to securing much-needed financial aid.
But the euro later lost steam, with the single currency last standing at $1.4255, little changed from late US trading on Thursday, its earlier bounce having stalled just below resistance near $1.4286.
Indian rupee was at Rs 44.95 versus the dollar, Malaysian ringgit at 3.0325 and Chinese yuan was trading at 6.4715 versus US currency.
At the weekend, the euro dropped against the dollar for a third straight session and hit a record low against the Swiss franc, with more losses expected if Greece's parliament didn't approve a package of austerity measures this week.
Passage is mandatory for the country to secure more bailout funds from euro zone governments. If more funds aren't found, Greece could default on its massive debt, a development that would roil markets. Banks and policymakers moved closer to a deal on Friday.
It was rough week for euro, and this week could prove an even tougher one if Greece's parliament does not approve a package of austerity measures. Worries about Greece caused the euro to drop against dollar for three straight sessions, pushing the single currency down 0.9 percent for the week and off 1.6 percent this month.
"It is make or break time for the euro next week," said Mark McCormick, currency strategist at Brown Brother Harriman in New York. "A lot hinges on this vote."
While Greece's successful confidence vote this past week raised the possibility the austerity program will pass, such an outcome is not guaranteed, particularly given a disgruntled opposition and public revolt.
OPEN MARKET RATES: On June 20, the rupee recovered 20 paisa against dollar for buying at 86.00 and 15 paisa for selling at 86.15. The rupee gained 62 paisa versus euro for buying at Rs 122.40 and 60 paisa for selling at Rs 122.90. On June 21, the rupee gained five paisa against dollar for buying at 85.90 and 10 paisa for selling at 86.05. The rupee, however, lost 37 paisa versus euro for buying and selling at Rs 122.77 and Rs 123.27.
On June 22, the rupee gained 10 paisa versus dollar for buying and selling at 85.80 and 85.95. The rupee, however, lost 23 paisa against euro for buying and selling at Rs 123.00 and Rs 123.50.
On June 23, the rupee was unchanged versus dollar for buying and selling at 85.80 and 85.95. The rupee also rose by Rs 1.33 against euro for buying at Rs 121.67 and selling at Rs 122.17.
On June 24, the rupee lost 20 paisa against dollar for buying at 86.00 and 25 paisa for selling at 86.20. The rupee also shed 21 paisa against euro for buying and selling at Rs 121.88 and Rs 122.38.
On June 25, the rupee depreciated by 10 paisa in relation to US currency for buying and selling at 86.10 and 86.30. The rupee gained 15 paisa versus the single European currency for buying at Rs 121.73 and selling at Rs 122.23.