Mixed patterns

RECORDER REPORT

KARACHI: Divergent trend was witnessed on the money market as the rupee, somehow managed to play both sides against the dollar on the money market during the ended on July 26, 2014.

In the inter-bank market, the rupee gained eight paisa in relation to the dollar for buying and selling at Rs 98.74 and Rs 98.76.

In the open market, the rupee slipped by 10 paisa in terms of the dollar for buying and selling at 98.80 and 99.00. The domestic currency depicted no change versus the euro for buying and selling at Rs 132.00 and Rs 132.25. Comfortable supply of dollars did not allow the rupee to lose sharply, so it looks that the rupee may not depict significant fall in days to come. Some analysts attributed the firmness in the value of the rupee to few factors behind it.

Firstly, the State Bank of Pakistan (SBP)’s policy to keep the rupee at a realistic level and partly because of easy and comfortable supply of dollars, experts said.

Besides, reports showed that the government is trying to increase remittances further through better incentives, but not come up with any plan to cut the widening gap between exports and imports.

Remittances sent by overseas Pakistanis also an apparent reason for firmness in the rupee versus the dollar, experts said.

INTER-BANK MARKET RATES: On Monday, the rupee managed to recover 11 paisa versus the dollar for buying and selling at Rs 98.82 and Rs 98.84. On Tuesday, the rupee shed two paisa versus the dollar for buying and selling at Rs 98.84 and Rs 98.86.

On Wednesday, the rupee gained 14 paisa versus the dollar for buying and selling at Rs 98.70 and Rs 98.72. On Thursday, the rupee shed two-paisa in relation to the dollar for buying and selling at Rs 98.72 and Rs 98.74. On Friday, the rupee fell by two paisa in relation to the dollar for buying and selling at Rs 98.74 and Rs 98.76.

OPEN MARKET RATES: On July 21, the rupee followed same trend against the dollar, picking up 10 paisa for buying and selling at Rs 98.70 and Rs 98.90. The rupee also went up in relation to the euro, gaining 25 paisa for buying and selling at Rs 133.00 and Rs 133.25.

On July 22, the rupee held the overnight levels in terms of the dollar for buying and selling at Rs 98.70 and Rs 98.90, they said. The rupee gained 30 paisa in relation to the euro for buying and selling at Rs 132.70 and Rs 132.95.

On July 23, the rupee, however, dropped by five paisa in terms of the dollar for buying and selling at Rs 98.75 and Rs 98.95. The rupee gained 20 paisa in relation to the euro for buying and selling at Rs 132.50 and Rs 132.75.

On July 24, the rupee followed the same pattern versus the dollar, losing five-paisa for buying and selling at Rs 98.80 and Rs 99.00. The rupee, however, picked up 10-paisa against the euro for buying and selling at Rs 132.40 and Rs 132.65.

On July 25, the rupee also shed five paisa versus the dollar for buying and selling at Rs 98.85 and Rs 99.05. The rupee followed same pattern, losing 10 paisa against the euro for buying and selling at Rs 132.50 and Rs 132.75.

On July 26, the rupee gained five paisa versus the dollar for buying and selling at Rs 98.80 and Rs 99.00. The rupee also picked up 50 paisa against the euro for buying and selling at Rs 132.00 and Rs 132.72.

OVERSEAS OUTLOOK FOR DOLALRS: In the first Asian trade, the euro regained more ground on the dollar in Asia, having rebounded from a five-month trough, but trading was anything but energetic thanks to a holiday in Japan and amid concerns that geopolitical tensions could flare up at any time. The common currency drifted up 0.2 percent to $1.3546, extending Friday’s bounce from a five-month low of $1.3491.

The dollar was trading against the Indian rupee at Rs 60.21, the greenback was available at 3.1750 versus the Malaysian ringgit and the US currency was at 6.2078 in terms of the Chinese yuan.

Inter bank buy/sell rates for the taka BDT against the dollar on Monday. 77.55-77.58 (previous 77.58-77.60). Call Money Rates: 05.75-07.25 percent (previous 05.25-07.25 percent).

In the second Asian trade, the yen dipped against the dollar and euro on Tuesday on a slight reduction in geopolitically-inspired risk aversion that lifted equities across Asia.

Still, markets were unable to fully shake off geopolitical concerns as tensions in the Ukraine and Gaza remained high, keeping the dollar and euro in a narrow corridor against the Japanese currency.

The dollar was trading against the Indian rupee at Rs 60.19, the greenback was available at 3.1760 in terms of the Malaysian ringgit and the US currency was at 6.205 versus the Chinese yuan. Inter bank buy/sell rates for the taka BDT against the dollar on Tuesday. 77.54-77.54 (previous 77.55-77.58). Call Money Rates: 05.75-07.25 percent (previous 05.50-07.25 percent).

In the forth Asian trade the Indian rupee ended weaker on Thursday, retreating from a more than one-week high hit earlier in the session on the back of month-end dollar demand from importers and possible intervention by the central bank.

The rupee had initially gained on sustained foreign fund inflows into the stock and debt markets and after India on Wednesday allowed foreign institutional investors to hold more government debt while reducing the portion available to long-term investors.

The dollar was trading against the Indian rupee at Rs 60.09, the greenback was at 3.1735 versus the Malaysian ringgit and the US currency was at 6.1949 in terms of the Chinese yuan.

In the third Asian trade, the dollar held close to a six-week peak against a basket of currencies in Asian trade on Wednesday, as the euro edged down to touch a fresh 2014 low on the diverging interest rate outlook for the US and euro zone.

The dollar was trading against the Indian rupee at Rs 60.15, the greenback was at 3.1695 versus the Malaysian ringgit and the US currency was at 6.1992 in terms of the Chinese yuan. Inter bank buy/sell rates for the taka BDT= against the dollar on Wednesday. 77.54-77.55 (previous 77.54-77.54). Call Money Rates: 05.75-07.25 percent (previous 05.50-07.25 percent).

In the final Asian trade, the dollar held gains versus the yen and the euro stood steady after rebounding from an eight-month low against the greenback as data painted a brighter picture of the US and euro-zone economies.

The dollar was little changed at 101.76 yen after gaining more than 0.3 percent overnight to a two-week high of 101.86 after weekly US filings for first-time jobless benefits fell to the lowest level since early 2006.

The dollar was trading against the Indian rupee at Rs 60.14, the greenback was at 3.1785 versus the Malaysian ringgit and the US currency was available at 6.1966 in terms of the Chinese yuan.

At the week-end, the US dollar hit an eight-month high against the euro after weak data on German business sentiment heightened concerns that geopolitical tensions were weighing on the euro zone economy. Germany’s Ifo business climate index, based on a monthly survey of some 7,000 firms, fell to 108.0 in July, marking a third consecutive monthly decline and missing estimates of 109.4, according to a Reuters poll of economists.