Strong demand for dollars forced the rupee to surrender its gains against its counterpart (US dollar). The rupee tumbled due to rising crisis over the Balance of Payment (BoP) and outflows of dollars. The absence of State Bank of Pakistan (SBP) was a surprising way for the business circle.
Money experts assumed that it was necessitating of the International Monetary Fund (IMF) to bring down the rupee versus the dollar. Some other experts were of the view that the rupee may try to seek its way after Ramazan and because of successful agreement with the IMF. The rupee may manage to gain handsome ground after pact with the IMF. According to a report, Pakistan and IMF have reached an agreement for a three-year programme of at least 5.3 billion dollars under an Extended Fund Facility (EFF).
INTER-BANK MARKET RATES: On July 1, the interbank market not issued on due to bank closing, dealers said. On July 2, the rupee recovered in relation to the dollar as it picked up 10 paisa for buying at 99.60 and 16 paisa gain for selling at 99.64.
On July 3, the rupee fell sharply against the dollar, losing 40 paisa for selling at 100.00 and the greenback dropped 46 paisa for selling at Rs 100.10, while on July 4, the rupee inched down by five paisa against the dollar for buying at 100.05 and the national currency was unchanged for selling at Rs 100.10.
INTER-BANK MARKET RATE: The rupee unchanged against the dollar for buying at 100.05 and the national currency gained slightly by two paisa for selling at Rs 100.08, they said.
OPEN MARKET RATES: On Monday, the rupee moved down slightly in relation to the dollar losing five paisa for buying and selling at Rs 100.65 and Rs 100.85, they said. The rupee also extended its fall versus the euro falling 25 paisa for buying at Rs 131.00 and Rs 131.25, they said.
On Tuesday, the rupee fell by 30 paisa for buying and selling at Rs 100.90 and Rs 101.10, they said, adding the rupee was up versus the euro, picking up 50 paisa for buying at Rs 130.50 and Rs 130.75.
On Wednesday, the rupee rose by five paisa against the dollar for buying and selling at Rs 100.60 and Rs 100.80. The rupee was unchanged versus the euro for buying and selling at Rs 131.00 and Rs 131.25 respectively.
On Thursday, the rupee gained 10 paisa in relation to the dollar for buying and selling at Rs 100.80 and Rs 101.00. The rupee, however, dropped by 40 paisa versus the euro for buying and selling at Rs 130.90 and Rs 131.15. On Friday, the rupee was lower against the dollar for buying at Rs 100.90 and for selling at Rs 101.10. The rupee rose by 90, 40 paisa versus the euro for buying and selling at Rs 130.00 and it picked up Rs 1.15 to Rs 130.25, they said. On Saturday, the rupee extended its fall against the dollar, losing 10 paisa for buying and Rs 101.00 and Rs 101.20, they said. The rupee did not move any side versus the euro for buying and selling at Rs 130.00 and Rs 130.25, they said.
OVERSEAS MARKET OUTLOOK: In the first Asian trade, the dollar was broadly firm as traders greeted the start of a new quarter that could see the US Federal Reserve beginning to wind down its stimulus, even as other major central banks are expected to maintain their super-easy monetary policy.
The Australian dollar touched near three-year lows versus the US dollar, though it managed to stage a modest comeback in the wake of a less dire-than-expected reading on China's manufacturing sector.
The dollar was trading against the Indian rupee at Rs 59.01, the greenback was at 3.1590 versus the Malaysian ringgit and the US currency was available at 6.132 in terms of the Chinese yuan.
In the second Asian trade, the dollar held firm near four-week highs against a basket of currencies, supported by expectations an end in US monetary stimulus will boost US bond yields, pulling back investors who have been seeking higher returns elsewhere.
The Australian dollar tumbled to a near three-year low after the Reserve Bank of Australia kept the door open to interest rate cuts and tried to talk down the currency. The dollar was trading against the Indian rupee at Rs 59.33, the greenback was available at 3.1675 in terms of the Malaysian ringgit and the US currency was at 6.1324 in terms of the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Tuesday: 77.75-77.80 (77.75-77.78). Call Money Rates: 05.50-07.50 percent (previous 05.50-07.50 percent).
In the third Asian trade, the US dollar held firm against its major counterparts, with the dollar index touching its highest level since late May, as investors positioned for a US holiday and key jobs data that could heighten expectations that the Federal Reserve will begin to reduce its monetary stimulus in the coming months.
The dollar was available against the Indian rupee at Rs 60.16, the greenback was at 3.1830 in terms of the Malaysian ringgit and the US currency was at 6.132 in relation to the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Wednesday: 77.76-77.80 (77.75-77.80). Call Money Rates: 05.50-07.50 percent (previous 05.50-07.50 percent.
In the fourth Asian trade, the dollar held near a five-week high against a basket of currencies on Thursday, steadying as investors looked to a string of potentially market-moving events, including the European Central Bank's policy review and US payrolls report.
Political instability in Portugal has weighed on the euro, sparking a sharp fall in euro/yen, which in turn lifted the Japanese currency across the board, though the move appears to have run its course for now.
The dollar was trading against the Indian rupee at Rs 60.00, the greenback was at 3.1840 in term of the Malaysian ringgit and the US currency was at 6.126 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Thursday: 77.75-77.76 (77.76-77.80). Call Money Rates: 06.75-07.00 percent (previous 05.50-07.50 percent).
In the final Asian trade, the dollar held near a five-week high against a basket of currencies, steadying as investors looked to a string of potentially market-moving events, including the European Central Bank's policy review and US payrolls report.
Political instability in Portugal has weighed on the euro, sparking a sharp fall in euro/yen, which in turn lifted the Japanese currency across the board, though the move appears to have run its course for now. The dollar was trading against the Indian rupee at Rs 60.00, the US currency was trading at 3.1840 in terms of the Malaysian ringgit and the greenback was at 6.126 in relation to the Chinese yuan.
At the week-end, the dollar gained broadly, hitting five-week highs against the yen and a six-week peak versus the euro, as better-than-expected US jobs data bolstered expectations that the Federal Reserve would scale back its asset purchases sooner than expected.
With the report, analysts expect the Fed to start winding down its quantitative easing program as early as September.