Steadier trend

RECORDER REVIEW

KARACHI: The rupee sustained its present levels against the dollar and euro on the money market during the week, ended on Dec 26, 2015.

In the inter-bank market, the rupee picked up 14 paisas versus the dollar for buying and selling at Rs 104.78 and Rs 104.80.

In the open market, the rupee depicted no change in terms of the dollar for buying and selling at Rs 106.10 and Rs 106.40. The rupee inched up gains versus the euro, gaining five paisas for buying and selling at Rs 115.80 and Rs 116.80.

The rupee, some how managed to hold it’s present levels during the shortened week owing to local holidays, experts said and adding that the rupee may not fluctuate sharply in the coming days.

A positive development was observed that for the first time country’s foreign exchange reserves have reached the historic 21 billion dollars mark. They attributed the rise to the prudent economic policies of the government, the macro-economic indicators were showing resilience.

INTER-BANK MARKET RATES: On Monday, the local currency lost 19 paisas for buying and selling at Rs 104.92 and Rs 104.94. On Tuesday, the rupee recovered seven paisas against the dollar for buying and selling at Rs 104.85 and Rs 104.90, experts said. On Wednesday, the rupee picked up seven paisas versus the dollar for buying at Rs 104.78 and it also rose by 10 paisas for selling at Rs 104.80 in process of trading activity.

OPEN MARKET RATES: On Dec 21, the rupee showed no change in terms of the dollar for buying and selling at Rs 106.10 and Rs 106.40. The rupee shed five in relation to the euro for buying and selling at Rs 115.85 and Rs 116.85. On Dec 22, the rupee followed suit, shed 10 paisas in terms of the dollar for buying at 106.20 and it also dropped by 15 paisas for selling at Rs 106.50. While, the rupee rose by 30 paisas in relation to the euro for buying and selling at Rs 115.20 and Rs 116.20.

On Dec 23, the rupee picked up 10 paisas in terms of the dollar for buying and selling at Rs 106.10 and Rs 106.40. The rupee, however, lost 60 paisas in relation to the euro for buying and selling at Rs 115.80 and Rs 116.80, they added.

On Dec 24, the rupee showed no change in terms of the dollar for buying and selling at Rs 106.10 and Rs 106.40. The rupee also did not move in relation to the euro for buying and selling at Rs 115.80 and Rs 116.80.

OVERSEAS OUTL0OK FOR DOLLAR: In the first Asian trade, the dollar drifted lower in light Asian trading amid doubts about how far and fast the Federal Reserve would raise US interest rates next year.

The dollar eased to 121.20 yen and further away from Friday’s brief peak of 123.59. The euro edged up to $0.0867 and the dollar was a shade weaker against a basket of major currencies at 98.680. The yen held gains made after Friday’s decision by the Bank of Japan to merely tweak its stimulus campaign rather than outright expand the amount of assets it buys.

The dollar was trading against the Indian rupee at Rs 66.31, the greenback was at 4.3000 in terms of the Malaysian ringgit and the US currency was at 6.4807 in relation to the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Monday: 78.65-78.68 (previous 78.70-78.70)

In the second Asian trade, the dollar steadied against the euro after dipping against the common currency on an inconclusive Spanish election result, while traders looked ahead to US data for direction.

The euro was steady at $1.0914, having risen about 0.4 percent overnight on short covering after Sunday’s national election in Spain. The gains were limited as no party won a clear mandate to govern, raising concerns about economic reforms in the euro zone’s fourth-largest economy.

The dollar was trading against the Indian rupee at Rs 66.31, the greenback was at 4.3000 in terms of the Malaysian ringgit and the US currency was at 6.4787 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Tuesday: 78.60-78.63 (previous 78.65-78.68)

In the third Asian trade, the dollar fell against a basket of currencies on Thursday, putting it on track for its steepest monthly loss since April, as traders resumed booking profit on bullish bets on the greenback following the US interest rate hike last week.

A bounce in oil prices from 11-year lows supported the Canadian dollar, Norwegian crown and other commodity-linked currencies.

Trading volumes were a fraction of daily averages, with skeletal staffing at bank trading desks in London and New York ahead of Christmas Day on Friday, when US and European financial markets will be closed.

At the week-end, the dollar fell against a basket of currencies on Thursday, putting it on track for its steepest monthly loss since April, as traders resumed booking profit on bullish bets on the greenback following the US interest rate hike last week.

A bounce in oil prices from 11-year lows supported the Canadian dollar, Norwegian crown and other commodity-linked currencies. Trading volumes were a fraction of daily averages, with skeletal staffing at bank trading desks in London and New York ahead of Christmas Day on Friday, when US and European financial markets will be closed.