Divergent trend

RECORDER REVIEW

KARACJO: The rupee fell in relation to the dollar on the open market, while, the domestic currency moved in tight-range during the week, ended on July 23, 2016.

In the inter-bank market, the rupee held the present levels against the dollar for buying and selling at Rs 104.84 and Rs 104.85.

In the open market, the rupee fell by 35 paisas in terms of the dollar for buying and selling at Rs 105.50 and Rs 105.70. The rupee, however, gained 10 paisas against the euro for buying and selling at Rs 115.30 and Rs 116.30.

Commenting on the rupee’s performance during the week, some experts said that the rupee managed to halt sharp losses due to steady supply of dollar

The foreign direct investment increased by 39 percent during the outgoing fiscal year, this factor may help the supply of dollar in the coming days, they said.

INTER-BANK MARKET RATES: On Monday, the rupee shed one paisa versus the dollar for buying and selling at Rs 104.85 and Rs 104.86. On Tuesday, the rupee was almost unchanged versus the dollar for buying and selling at Rs 104.84 and Rs 104.86. On Wednesday, the rupee gained two paisas versus the dollar for buying and selling at Rs 104.83 and Rs 104.84. On Thursday, the rupee shed one paisa against the dollar for buying and selling at Rs 104.84 and Rs 104.85. The rupee held the other night levels in terms of the dollar for buying and selling.

OPEN MARKET RATES: On July 19, rupee firmly held the prevailing levels in terms of the dollar for buying and selling at Rs 105.15 and Rs 105.35. The rupee rose by 80 paisas against the euro for buying and selling at Rs 115.40 and Rs 116.40.

On July 20, the rupee was firm in terms of the dollar for buying and selling at Rs 105.15 and Rs 105.35. The rupee shed 20 paisas against the euro for buying and selling at Rs 115.60 and Rs 116.60.

On July 21, the rupee shed five paisas in terms of the dollar for buying and selling at Rs 105.20 and Rs 105.40. The rupee, however, picked up 30 paisas against the euro for buying and selling at Rs 115.30 and Rs 116.30.

On July 22, the rupee lost 20 paisas in terms of the dollar for buying and selling at Rs 105.40 and Rs 105.60. The rupee also dropped by 50 paisas against the euro for buying and selling at Rs 115.80 and Rs 116.80. On July 23, the rupee fell by 10 paisas in terms of the dollar for buying and selling at Rs 105.50 and Rs 105.70. The rupee, however, gained 45 paisas against the euro for buying and selling at Rs 115.30 and Rs 116.30.

OVERSEAS OUTLOOK FOR DOLLAR In the first Asian trade, the Turkish lira rose against the dollar and the safe-haven yen fell broadly in the wake of a failed Turkish coup over the weekend, easing investor concerns about political uncertainty and geopolitical risks.

The dollar was trading against the Indian rupee at Rs 67.12, the greenback was at 3.9750 versus the Malaysian ringgit and the US currency was at 6.6974 in relation to the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Monday: 78.40-78.40 (previous 78.40-78.40).

In the second Asian trade, the yen hovered near 3-1/2-week lows on a combination of growing expectations of monetary easing by the Bank of Japan, a broad recovery in risk appetite and speculation about M&A-related yen-selling.

The dollar was trading against the Indian rupee at Rs 67.17, the greenback was at 3.9865 in terms of the Malaysian ringgit and the US currency was at 6.6983 versus the Chinese yuan.

In the third Asian trade, the dollar gave up some of its recent gains against the yen, but it held close to four-month highs against a basket of currencies thanks to strong US data and rising expectations that the Bank of Japan (BoJ) will take additional easing steps.

The dollar was trading against the Indian rupee at Rs 67.18, the greenback was at 4.0230 in terms of the Malaysian ringgit and the US currency was at 6.6882 versus the Chinese yuan.

Inter bank buy/sell rates for the taka against the dollar on Wednesday: 78.40-78.40 (previous 78.40-78.40).

In the fourth Asian trade, the dollar hit a six-week high against the safe-haven yen as investor risk appetite remained strong, boosting equities and pushing US debt yields higher to favour the greenback.

The dollar was trading against the Indian rupee at Rs 67.22, the greenback was at 4.0480 versus the Malaysian ringgit and the US currency was at 6.6727 in relation to the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Thursday: 78.40-78.40 (previous 78.40-78.40).

In the final Asian trade, the yen hovered above six-week lows after comments from Bank of Japan Governor Haruhiko Kuroda dented speculation Japan may be preparing a radical “helicopter money” economic stimulus.

The yen bounced back to 105.88 yen per dollar from 107.49, its six-week low against the US currency touched on Thursday.

At the week-end, the dollar index rose to a more than four-month high as positive US data and weak readings from overseas prompted investors to re-evaluate the likelihood of a rate increase from the US Federal Reserve while other central banks are seen cutting rates or adding stimulus.

The rise gave the index, which measures the greenback against six major world currencies, its fifth straight weekly gain.