Tuesday, December 3rd, 2024
Home »Top Stories » THE RUPEE: modest fall

The rupee fell modestly against the dollar on the currency market during the week, ended on August 17, 2013. In the interbank market, the rupee shed 22 paisa in relation to the dollar for buying at Rs 102.90 and it fell by 23 paisa for selling at Rs 102.95.

In the open market, the rupee fell by 20 paisa in terms of dollar for buying and selling at Rs 103.30 and Rs 103.50. The rupee, however, gained 25 paisa against the euro for buying and selling at Rs 136.00 and Rs 136.25.

According to some economists, basic reasons are external deficits, a lack of capital inflows, depletion of Reserves, flight of capital and failure to push through economic reforms. So much reliability on import is bad and causing unprecedented rise in the value of dollar.

INTER-BANK MARKET RATES: On Monday, the rupee dropped by 38 paisa in relation to the dollar for buying at Rs 102.68 and the national currency fell by 37 paisa for selling at Rs 102.72. On Tuesday, the rupee inched up by one paisa in relation to the dollar for buying at Rs 102.67, the national currency, also gained two paisa for selling at Rs 102.70. On Wednesday, the rupee came down versus the dollar, losing six paisa for buying and selling at Rs 102.73 and Rs 102.76. On Thursday, the rupee came down versus the dollar, losing six paisa for buying and selling at Rs 102.73 and Rs 102.76. On Friday, the rupee continued fall against the dollar, losing 17 paisa for buying at Rs 102.90 and it also fell by 19 paisa for selling at Rs 102.95 in process of trading, dealers said.

OPEN MARKET RATES: On August 12, the rupee followed same pattern, dropping 30 paisa in terms of the dollar for buying and selling at 103.10 and Rs 103.30. The rupee slid in terms of the euro, falling 55 paisa for buying at Rs 135.75 and rs 136.00.

On August 13, the rupee dropped by 10 paisa in terms of the dollar for buying and selling at 103.20 and Rs 103.40. The rupee also fell in terms of the euro, losing 25 paisa for buying at Rs 136.00 and Rs 136.25. On August 14, commercial centres were closed due to Pakistan's Independence Day holiday. On August 15, the rupee followed same patterns, shedding 30 paisa in terms of the dollar for buying and selling at 103.50 and Rs 103.70, they said. While, the rupee retained its value for buying at Rs 136.00 and Rs 136.25.

On August 16, the rupee, however, gave up overnight weakness in terms of the dollar, gaining 20 paisa for buying and selling at for buying and selling at Rs 103.30 and Rs 103.50. The rupee, however, dropped by 25 paisa in relation to the euro for buying at Rs 136.25 and Rs 136.50. On August 17, the rupee did not move any side in terms of the dollar for buying and selling at Rs 103.30 and Rs 103.50. While, the rupee recovered its overnight losses versus the euro, picking up 25 paisa for buying at Rs 136.00 and Rs 136.25.

DOLLAR'S PERFORMANCE VS OTHER CURRENCIES: In the first Asian trade, the dollar edged higher versus the yen on position squaring, having slipped earlier as data showed Japan's economy grew at a slower-than-expected pace in the second-quarter, prompting investors to trim their exposure to risk. The dollar rose 0.3 percent to 96.54 yen by early afternoon, pulling away from a seven-week low of 95.81 yen set last Thursday.

The dollar was trading against the Indian rupee at Rs 60.72, the US currency was available at 3.2470 in terms of the Malaysian ringgit and the greenback was at 6.1211 in relation to the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Monday.

77.75-77.7550 (77.75-77.75). Call Money Rates: 08.25-08.25 percent (previous 08.00-09.25 percent.

In the second Asian trade, the dollar retook some lost ground as investors covered short positions in anticipation of potentially strong retail sales data, while the yen sagged on a media report Japanese Prime Minister Shinzo Abe is considering a corporate tax cut.

The dollar rose 0.3 percent to fetch 97.23 yen, extending its rebound from a seven-week low of 95.81 touched last Thursday.

The dollar was trading against the Indian rupee at Rs 61.65, the US currency was at 3.2550 in terms of the Malaysian ringgit and the greenback was at 6.123 against the Chinese yuan.

In the fourth Asian trade, the dollar slipped against the yen after Japanese ministers shot down a media report earlier this week that Tokyo is considering cuts in corporate tax, triggering broad weakness in the greenback in thin trading.

The dollar was also shackled by underlying uncertainty on when the Federal Reserve might start trimming its stimulus, while the euro and sterling drew support from better economic news at home.

The dollar was trading against the Indian rupee at Rs 61.43, the greenback was 3.2660 in terms of the Malaysian ringgit and the US currency was at 6.1162 against the Chinese yuan.

In the final Asian trade, the dollar firmed in subdued Asian trade after uncertainty about the US Federal Reserve's stimulus withdrawal knocked it off an 11-day peak against the yen in the previous day's trade.

Upbeat US jobless claims data initially spurred a rally on Thursday, suggesting an early end to the Fed's $85 billion a month in asset purchases and lifting yields on US Treasuries. But then disappointing data on industrial output and manufacturing set the stage for the dollar's reversal.

The dollar was trading against the Indian rupee at Rs 61.82, the greenback was at 3.2790 against the Malaysian ringgit and the US currency was available at 6.1115 n terms of the Chinese yuan.

At the week-end, the dollar reversed course during New York trading on Friday to rise against the euro and yen after a report showed US consumers were less optimistic, prompting a rise in risk aversion.

The report indicated consumers, the backbone of the US economy, were bracing for higher interest rates and slightly slower economic growth.

Copyright Business Recorder, 2013


the author

Top
Close
Close