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Bears dominated the money market as the rupee drifted lower against the dollar on the money market during the week, ended on December 19, 2015. In the interbank market, the rupee dropped by 33 paisas in terms of the dollar for buying and selling at Rs 104.73 and Rs 104.75.

In the open market, the rupee was down by 20 paisas against the dollar for buying at Rs 106.10 and it also lost 25 paisas for selling at Rs 106.35. The rupee, however, gained 50 paisas in relation to the euro for buying and selling at Rs 115.50 and Rs 116.50, they added.

The rupee could not sustain it's gains due to rising demand for dollars, experts said. Under the circumstances, according to reports, when the foreign Exchange reserves are crossing 20 billion dollars mark, the rupee may be able to hold the present levels against the dollar, they said.

INTER-BANK MARKET RATES: On Monday, the rupee continued fall against the dollar, shedding 15 paisas for buying and selling at Rs 104.40 and Rs 104.45. On Tuesday, the rupee failed to improve versus the dollar, instead it has lost 55 paisas against the dollar for buying and selling at Rs 104.90 and Rs 105.00, they said.

On Wednesday, the rupee picked up six paisas versus the dollar for buying at Rs 104.84 and it also gained 14 paisas for selling at Rs 104.86.

On Thursday, the rupee picked up two paisas versus the dollar for buying and selling at Rs 104.82 and Rs 104.84. On Friday, the rupee maintained an upward trend in terms of the dollar, gaining nine paisas for buying and selling at Rs 104.73 and Rs 104.75.

OPEN MARKET RATES: On December 14, the rupee, however, gained the 10 paisas in terms of the greenback for buying at Rs 105.90 while it rose by 15 paisas for selling at Rs 106.10, they added. The rupee picked up 30 paisas versus the euro for buying and selling at Rs 116.00 and Rs 117.00.

On December 15,: In sympathy with the trend in the interbank market, the rupee fell by 10 paisas in relation to the greenback for buying at Rs 106.00 while it slid by 20 paisas for selling at Rs 106.30, they added. The rupee gave up overnight gains versus the euro, losing 30 paisas for buying and selling at Rs 116.30 and Rs 117.30, they added.

OPEN MARKET RATES: The rupee did not move any side against the dollar for buying at Rs 106.00 while it gained five paisas for selling at Rs 106.25, they added. The rupee rose by 80 paisas versus the euro for buying and selling at Rs 115.50 and Rs 116.50, they added.

OPEN MARKET RATES: The rupee sustained it's overnight levels against the dollar for buying and selling at Rs 106.00 and Rs 106.25, they added. The rupee extended overnight gains in relation to the euro, rising 40 paisas for buying and selling at Rs 115.10 and Rs 116.10, they added.

OPEN MARKET RATES: The rupee, however, shed 10 paisas against the dollar, losing 10 paisas for buying and selling at Rs 106.10 and Rs 106.35, they added. The rupee inched up by 10 paisas in relation to the euro for buying and selling at Rs 115.00 and Rs 116.00, they added.

OPEN MARKET RATES: The rupee sustained it's overnight levels against for buying and selling at Rs 106.10 and Rs 106.35, they added.

While, the rupee lost 50 paisas in relation to the euro for buying and selling at Rs 115.50 and Rs 116.50, they added.

OVERSEAS MARKET OUTLOOK FOR DOLLAR: In the first Asian trade, the dollar edged higher against a basket of currencies with major currencies range-bound ahead of this week's US Federal Reserve meeting, while China's yuan depreciated further after the country's central bank said it has also begun tracking its currency against a basket.

Some investors viewed the new index as a green-light for more devaluation, and this view was reinforced when the central People's Bank of China on Monday set its yuan midpoint rate at its weakest level since 2011. The currency subsequently opened at a fresh 4-1/2 year low.

The dollar was trading against the Indian rupee at Rs 66.96, the greenback was at 4.3150 in terms of the Malaysian ringgit and the US currency was at 6.4588 in relation to the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Monday: 78.80-78.87 (previous 78.87-78.90.

In the second Asian trade, the dollar was little changed against the yen and euro as crude oil and equity prices took a breather after a recent slide.

But the US currency remained vulnerable to any surprise from a two-day policy-setting US central bank meeting that ends on Wednesday.

The Federal Reserve is widely expected to hike interest rates for the first time in almost a decade. The dollar was flat at 121.04 yen, having pulled back from a 6-week low of 120.35 on Monday.

"Dollar long positions are being liquidated in the market at a faster pace than expected," said Junichi Ishikawa, market strategist at IG Securities in Tokyo. The euro was little changed at $1.0993, off a 6-week peak of $1.1048 overnight.

The dollar was trading against the Indian rupee at Rs 67.05, the greenback was at 4.3230 in terms of the Malaysian ringgit and the US currency was at 6.4650 in relation to the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Tuesday: 78.75-78.75 (previous 78.80-78.87).

In the third Asian trade, the dollar came off a near one-week high versus a basket of major currencies on Wednesday, but its losses were limited as the market counted down the hours to a likely hike in US interest rates.

The dollar was trading against the Indian rupee at Rs 66.88, the greenback was at 4.3060 in terms of the Malaysian ringgit and the US currency was available at 6.4657 in relation to the Chinese yuan.

In the forth Asian trade, The dollar rose against the yen and Swiss franc as the first US interest rate hike in nine years coaxed investors to emerge from safe-haven currencies, but traders said hurdles - some psychological - lay in wait before any lasting gain.

In a well-anticipated move, the Federal Reserve raised its benchmark interest rates by a quarter of a percentage point on Wednesday. Following the decision, the dollar rose, shares on Wall Street soared, and the two-year Treasury yield rose to its highest in five years.

The dollar was available against the Indian rupee at Rs 66.64, the greenback was at 4.3280 in terms of the Malaysian ringgit and the US currency was at 6.4820 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Thursday: 78.70-78.72 (previous 78.75-78.75.

In the final Asian trade, the dollar slipped against the yen on Friday after a set of stimulus measures the Bank of Japan unveiled were deemed too modest to drive the greenback higher.

The BOJ on Friday said after its policy meeting that it would expand the types of assets it purchases, sending the dollar briefly soaring versus the yen.

But the greenback slid as it became clear that the central bank would not expand its base money target under its massive stimulus programme.

The dollar was available against the Indian rupee at Rs 66.43, the greenback was at 4.2830 in terms of the Malaysian ringgit and the US currency was at 6.4787 versus the Chinese yuan.

At the week-end, the US dollar tumbled against the yen after the Bank of Japan tweaked its monthly asset-purchase program in a way that traders viewed as minor, suggesting that the central bank may not ease policy as much as expected.

The BoJ set up a programme to buy exchange-traded funds, extend the maturity of bonds it owns to around 12 years and increase purchases of risky assets.

The dollar, which had hit a more than two-week high of 123.590 yen shortly after the announcement, was last down about 1 percent against the yen at 121.290 yen.

The euro rose slightly against the dollar, but analysts said the move was attributable to thin holiday trading rather than traders making bets on the fundamental outlook for the currency.

Copyright Business Recorder, 2015


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