Firm trend

RECORDER REVIEW

KARACHI: The rupee recovered modestly against the dollar on the currency market during the week, ended on April 18, 2015.

In the inter-bank market, the rupee gained 35 paisa in relation to the dollar for buying and selling at Rs 101.50 and Rs 101.55.

In the open market, the rupee managed to gain 10 paisa versus the dollar for buying and selling at Rs 102.30 and Rs 102.50, while, the rupee failed to sustain its overnight levels versus the euro, Rs 2.15 losing for buying and selling at Rs 110.40 and Rs 110.65.

In the beginning sessions of the week, the rupee showed slight erosion in it’s value versus the dollar due to strong buying of dollar, dealers said. But, they said that there was no panic buying at all, because dollars’ supply was enough to meet the demand.

It’s a fact that since the Yemen crisis emerges, there were rising anticipations that the demand would rise fro the dollar and supply will come down, but market did not observe any extra ordinary situation in the market.

All fears came up following the concern over the reaction of the UAE government on Pakistan’s decision. In the closing sessions, the rupee started recovering versus the dollar and may continue upward journey in the coming days, some experts said.

INTER-BANK MARKET RATES: On Monday, the rupee inched by one paisa in relation to the dollar for buying and selling at Rs 101.85 and Rs 101.86, respectively. On Tuesday, the rupee gained five paisa in relation to the dollar for buying and selling at Rs 101.79 and Rs 101.82.

On Wednesday, the rupee recovered 12 paisa more in terms of the dollar for buying and selling at Rs 101.67 and Rs 101.69. On Thursday, the rupee moved cautiously versus the dollar, gaining two paisa in terms of the dollar for buying and selling at Rs 101.65 and Rs 101.67.

On Friday, the rupee gained 15 paisa against the dollar for buying and selling at Rs 101.50 and Rs 101.55, respectively.

OPEN MARKET RATES: On April 13, the rupee maintained its overnight levels against the dollar for buying and selling at Rs 102.40 and Rs 102.60. The rupee gained 50 paisa further versus the euro for buying and selling at Rs 108.25 and Rs 108.50.

On April 14, the rupee firmly held the overnight levels against the dollar for buying and selling at Rs 102.40 and Rs 102.60. The rupee moved up by five paisa further versus the euro for buying and selling at Rs 108.20 and Rs 108.45.

On April 15, the rupee picked up five paisa against the dollar for buying and selling at Rs 102.35 and Rs 102.55. The rupee gave back overnight gains versus the euro, losing five paisa for buying and selling at Rs 108.25 and Rs 108.50, they said. On April 16, the rupee, however, surrendered its overnight gains against the dollar, losing five paisa for buying and selling at Rs 102.40 and Rs 102.60. The rupee recovered Rs 125 in relation to the euro for buying and selling at Rs 109.50 and Rs 109.75.

On April 17, the rupee sustained overnight levels in terms of the dollar for buying and selling at Rs 102.40 and Rs 102.60. The rupee, lost 65 paisa in relation to the euro for buying and selling at Rs 110.15 and Rs 110.40

On April 18, the rupee sustained overnight levels in terms of the dollar for buying and selling at Rs 102.30 and Rs 102.50. The rupee shed more 25 paisa in relation to the euro for buying and selling at Rs 110.40 and Rs 110.65.

OVERSEAS MARKET OUTLOOK FOR DOLLAR: In the first Asian trade, the euro was on the defensive morning, pressured by the European Central Bank’s stimulus driving interest rates lower in the euro zone and on concerns over talks between debt-strapped Greece and its creditors over more funding for Athens.

The euro traded at $1.0615, flat on the day after having touched a 3 1/2-week low of $1.05670 to post its fifth straight day of losses on Friday.

The dollar was trading against the Indian rupee at Rs 62.31, the greenback was at 3.6730 versus the Malaysian ringgit and the US currency was at 6.2090 in relation to the Chinese yuan.

Inter bank buy/sell rates for the taka against the dollar on Monday. 77.80-77.80 (previous 77.80-77.80). Call Money Rates: 07.00-8.00 percent (Previous 07.00-08.00 percent).

In the second Asian trade, the euro brushed a fresh two-year low against a broadly firmer yen, as the Japanese currency doggedly held on to gains made in the previous session.

Analysts and market participants said the trigger for investors to unwind their bearish yen positions overnight was comments from Koichi Hamada, an economic adviser to Japan’s Prime Minister Shinzo Abe.

Hamada told a TV programme on Monday that the yen’s current level of around 120 per dollar is very weak. The dollar was trading against the Indian rupee at Rs 62.51, the greenback was at 3.7040 versus the Malaysian ringgit and the US currency was at 6.2140 in terms of the Chinese yuan.

In the third Asian trade, the dollar took back some ground lost after a surprisingly weak US retail sales report, while the Australian dollar edged lower on Wednesday after downbeat Chinese economic data.

China’s annual economic growth slowed to a six-year low of 7.0 percent in the first quarter, with other key indicators slumping to new multi-year lows.

The dollar was trading against the Indian rupee at Rs 62.43, the greenback was at 3.7150 in terms of the Malaysian ringgit and the US currency was at 6.2055 in relation to the Chinese yuan.

Inter bank buy/sell rates for the taka against the dollar on Wednesday. 77.80-77.80 (previous 77.80-77.80). Call Money Rates: 07.00-8.00 percent (Previous 07.00-08.00 percent).

In the fourth Asian trade, the dollar struggled to gain traction against a basket of major currencies, with the dollar index last trading at 98.316, having set a one-week low of 97.897 earlier on Thursday.

Not helping dollar bulls, data on Wednesday showed US industrial production recorded its biggest drop in more than 2-1/2 years in March.

The dollar had come under broad pressure earlier on Thursday on the back of a bounce in the euro, which rose to as high as $1.0748. The dollar was available at Rs 62.37 against the Indian rupee, the greenback was at 3.6725 versus the Malaysian ringgit and the US currency was trading in relation to the Chinese yuan at 6.1950.

Inter bank buy/sell rates for the taka against the dollar on Thursday. 77.80-77.80 (previous 77.80-77.80). Call Money Rates: 07.00-8.00 percent (Previous 07.00-08.00 percent).

In the final Asian trade, the dollar wallowed near a one-week low against a basket of major currencies and was on track for its biggest weekly drop in a month in the wake of poor US economic data.

The dollar retreated this week as a series of lacklustre indicators underscored the view that the Federal Reserve is more likely to raise interest rates later in the year than in June.

The dollar was trading against the Indian rupee at Rs 62.37, the greenback was at 3.6350 in terms of the Malaysian ringgit and the US currency was at 6.1926 versus the Chinese yuan.

At the week-end, the US dollar posted its worst week in four against a currency basket after data showing a rise in consumer prices failed to alleviate concerns that recent soft US economic data could delay the Federal Reserve’s first rate hike.

The dollar rebounded against major currencies in morning trading after data showed US consumer prices rose 0.2 percent in March, while closely watched core consumer prices rose 1.8 percent year-on-year, inching closer to the Fed’s 2.0 percent target.