Dollar versus Rupee:

Weekly trend:

Recovery was observed in the national currency’s strength as rupee posted 0.05 paisas against the greenback. The US currency was trading at Rs.85.20 on Friday as it started off its journey at Rs.85.25 on Monday. Dollar’s demand was on the decline as rupee took advantage of it. Moreover, rupee also remained on the positive side versus rupee, last week that ended as on 18^th June 2010. Therefore, rupee registered gains since last 2 consecutive weeks.

Daily reports:

The recovery of the national currency against greenback continued on the first working day of the new week in the currency exchange market. The US dollar was trading at Rs.85.10 at close of markets. Thus, rupee registered a gain of 0.15 paisas versus the US currency. In ending sessions of Friday, rupee was trading at Rs.85.25. On the international desk, the dollar fell against currencies linked to growth after China said it would allow more flexibility in the yuan’s fixed exchange rate, boosting optimism the economic recovery may strengthen. The US currency weakened against 11 of its 16 most-actively traded peers. From $1.2388 on June 18, the dollar was little changed at $1.2385 per euro at 11:58 a.m. in New York. It touched $1.2487, the weakest level since May 24.

Dull trading sessions were witnessed in the currency exchange market as the US currency remained unchanged versus the national currency on Tuesday amid lack of demand in the market. The US dollar was trading at the same rate of Rs.85.10 at close of markets. Thus, rupee ended the day on a positive note versus dollar. In the international market today, gains in the yen were tempered after China’s reference rate for the yuan surged by 0.43 percent, the most since 2005. Central Bank of China set the daily rate at 6.7980 per dollar, compared with 6.8275 yesterday, and the yuan’s close of 6.7976.

Another dull trading session was observed in the absence of dollar’s demand in the currency exchange market on Wednesday. The American currency was continuing to trade at the same price at close of markets. On the international desk, the dollar sold near a four-week low versus the yen before a report that’s forecast to show U.S. new-home sales plunged in May the most in 16 years. The dollar shed 0.5 percent to 90.15 yen at 9:06 a.m. in New York, from 90.57 yesterday. It touched 90.09, near a one- month low of 89.97 reached June 21.

Rupee remained unchanged amid decline in dollar’s demand in the currency exchange market. The dollar ended the day at Rs.85.10 versus the national currency on the local desk. Thus, rupee continued to trade on a positive note against the US currency.  In the international desk, against the U.S. dollar, the single currency of Euro zone has fallen 19 percent since its Nov. 25 high, trading today at $1.2279 after reaching a four-year low of $1.1877 on June 7.

Analysis:

Rupee continued the same course of action against dollar as it did one week back. Major factor of the recovery of rupee was the declining demand of US currency that helped rupee recover swiftly against the American dollar.  

Short term outlook:

As reports coming from the news circle that the national currency would come under severe pressure amid Oil payments were due by June end the amount level would be of $500-600 million.

Moreover, from Monday oil payment would be started and corporate sector demand would decline the rupee position of the national currency. But, home remittances and export rec

An expert said that the oil payment would start from Monday and other demands from the corporate sector would further deteriorate the rupee value. However, they said inflows of home remittances and export proceeds might add stability in the price of the national currency.

Global market trend:

The US currency traded on a soft note in Asian and retained post-FOMC losses versus major counterpart currencies.

Pound versus Rupee:

The cable’s price soared amid its demand increased in the local market and minutes of the Bank of England’s June meeting revealed policy maker Andrew Sentance voted for increasing interest-rate. Pound Sterling was trading at Rs.126.80 on Friday by posting gains of Rs.1.35 versus the local currency.

Analysis:

As we reported in our last week’s weekly review that British currency might gain therefore it happened and Pound scored a gain of Rs.1.35 in the week ended as on 25^th June 2010. It’s because of rise in demand and increasing interest rate decision.

Short Term outlook:

On the basis of our last weekly report and current week’s behavior in our daily reports therefore Pound Sterling might see more gains coming on the cable’s side.

Euro versus Rupee:

Weekly trend:

On the second consecutive week, euro scored more gains versus rupee in the exchange rate market. Euro zone’s shared currency set off week’s trading at Rs.104.03, posted gains and was changing hands at Rs.104.30 on Friday. Thus, the single currency registered a gain of 0.27 paisas versus rupee on the local desk. In last week’s trading sessions, euro gained Rs.2.20 versus the Pakistani rupee.

International market trend:

The euro remained up against the US dollar as erased earlier losses as advances by U.S. stocks and commodities that sharpened the appetite of the investor for riskier assets.

 

UAE Dharam versus Rupee:

 

Weekly trend

Mild fluctuation was witnessed in the price of Emirates’ currency in the exchange rate market. The UAE Dharam was trading at Rs.23.13 on Friday thus accumulating mere gain 0.01 paisa versus rupee.

Daily Report:

The UAE Dharam shed mere grounds amid mild decline in its demand in the forex exchange market. The emirate’s Dharam was trading at Rs.23.12 on Monday as compared to Rs.23.13 on Friday.

UAE Dharam was the only currency to score mere gains against rupee in the currency exchange rate market. Rupee was trading at 23.14 thus declined by 0.02 paisas on the local desk. The Emirates’ currency shed a mere ground that is 0.01 versus rupee yesterday.

Mere recovery was seen as UAE Dharam shed 0.01 paisa versus rupee on the local desk. Rupee was trading at 23.13 today as compared to 23.14 yesterday.

Due to absence of the demand UAE Dharam remained unchanged versus the rupee. Rupee was trading at 23.13 at close of markets on Thursday. Thus, rupee ended the day on a positive note versus Dharam.

 

Short Term Outlook:

From our daily and last weekly reports, UAE Dharam might move both ways upward as well downward. Thus, we don’t expect any huge movement in Dharam’s price on the local desk.