Written by Ayaz Ali Messam Sunday, 01 August 2010 19:09
Dollar versus Rupee:
Weekly trend:
Demand of US currency was the main factor to decide rupees fall in the currency exchange market this week. However, US dollar declined in the international market. The greenback, on Monday started off trading at Rs.85.70, due to hike in its demand went up and was changing hands at Rs.85.75 at close of markets on Friday. Thus, rupee gave up 0.05 paisas versus dollar in the dealings.
Analysis:
Rupee remained in the negative territory due to hike in dollar’s demand. Dollar’s demand was seen as importers and individual buyers bought the greenback. Moreover, declining reserve’s this week also affected rupee to shed grounds.
Short term outlook:
As Ramadan ul Mubarak is at the gate therefore demand of US currency would remain up as people will go to perform Umrah. That could bring rupee under pressure and demand of US currency will remain high. But from second Ashra expatriates would start sending money to their loved ones therefore rupee would gain strength.
Global market trend:
For the first time this year, the US currency reached a level below 86 yen and had 3rd monthly shed versus Japanese currency as reports from US government showed that economic growth has slowed in the second quarter. The American dollar declined 0.4% to 86.41 Japan’s yen from 86.79 yesterday after touching 85.95, it was the lowest level since Nov. 30.
Daily reports:
Demand of US currency rose significantly in the currency exchange market on Tuesday as rupee shed 0.10 paisas. The US dollar kicked off trading at Rs.85.70, posted major gains and was changing hands at Rs.85.80 at close of markets. Thus, rupee ended the day on a negative note versus dollar. On the international desk, the greenback advanced versus most of its major counterparts as a drop in U.S. consumer sentiment revived demand for the greenback’s safety. The dollar rose 0.1 percent to $1.2977 per euro at 11:09 a.m. in New York, from $1.2994 yesterday, after touching $1.3046, the weakest level since May 10.
In the interbank dealings today, the US dollar was trading at Rs.85.50 for buying and Rs.85.70 for selling on Tuesday.
Decline in dollar’s demand was witnessed as rupee recorded a recovery of 0.10 paisas against greenback. The American currency was trading at Rs.85.70 on Wednesday as compared to Rs.85.80 on Tuesday. Thus, rupee ended the day on a positive note versus greenback in the currency exchange market. On the global desk, the dollar shed from the highest level in almost two weeks versus Japanese yen as orders for U.S. durable goods unexpectedly dropped last month. The greenback shed 0.4% to 87.55 Japan’s currency at 11:05 a.m. in New York, from 87.90 yesterday, after reaching 88.12, the highest level since July 15.
Rupee recovered 0.05 paisas on buying and selling in the interbank dealings on Wednesday. The greenback was trading at Rs.85.45 for buying and Rs.85.65 for selling at close of markets.
Decline was recorded in the price of rupee amid American currency’s demand remained low on Thursday. The American currency started off new day’s trading at Rs.85.70, posted gains and was changing hands at Rs.85.80 at close of markets. Thus, rupee lost 0.10 paisas versus greenback.
Rupee also lost 0.05 paisa which it had recovered yesterday amid rising demand of US dollar. The greenback was trading at Rs.85.50 for buying and Rs.85.70 for selling at close of markets.
Pound versus Rupee:
Weekly trend:
Pound Sterling crossed Rs.133/- mark in the forex market today amid significant hike in its demand. The cable started off new week’s trading at Rs.131.80, posted heavy gains and changing hands at Rs.133.20 at close of markets on Friday. Thus, rupee lost Rs.1.40 against the British currency.
Analysis:
As expected, Pound sterling continued its rising trend in the local market as more people demand the British currency. Pound’s better position in the international market and demand in the kerb market here remained the key factors to post gains.
Short Term outlook:
On the basis of our reports therefore we see pound’s rising trend would continue in coming days and rupee would remain under pressure.
Euro versus Rupee:
Weekly trend:
Consistency in the rise of Eurozone’s currency was seen this week too in the Exchange Rate market. Moreover, the single currency has started recovering its previous losses in the international as well as local markets. The 16-nation currency was trading at Rs. 111.30 on Friday as it gained Rs.1.00 throughout as it commenced trading at Rs.110.30 on Monday.
On June 25th 2010, Euro was trading at 104.30 versus rupee in the currency exchange market on Friday.
Short Term outlook:
Euro’s positive trend would continue as technical and fundamental aspects are favoring the single currency. On the basis of our reports therefore we see pound’s rising trend would continue in coming days and rupee would remain under pressure.
International market trend:
The single currency of eurozone retreated gains of yesterday after testing the 1.31 handle early in the US session. The retail sales data proved to be disappointing that pushed the euro as low as 1.2980. Unemployment in Eurozone was in line with expectations, with the figure printing at 10.0%. In July 2010, Euro appreciated 6.2% against the greenback
UAE Dharam versus Rupee:
Weekly trend
Emirates’ currency remained in the positive territory as Dirham’s demand continued to go up in the Exchange Rate market this week. The UAE Dirham posted a gain of 0.03 paisas versus rupee starting to trade at Rs.23.25 on Monday and Rs.23.28 on Friday. Thus, rupee closed the current week on a negative note versus Dirham.
Short Term Outlook:
UAE Dirham would continue to trade on a positive note in coming days against rupee due to demand.
Daily Report:
More gains were witnessed in the price of UAE Dirham as its demand continued to remain high in the currency exchange market. The UAE dirham opened trading at Rs.23.25, depicted upward trend amid demand high and was trading at Rs.23.35 at close of markets on Tuesday. Thus, rupee lost 0.10 paisas versus emirates’ currency.
In the interbank market, Dirham was trading at Rs.23.27 for buying and Rs.23.33 for selling.
Emirates’ currency remained in the negative territory amid decline in its demand on the local desk versus rupee. The dirham set off trading at Rs.23.35, declined significantly and was trading at Rs.23.25 on Wednesday. Thus, rupee recovered 0.10 paisas that it had lost yesterday versus UAE Dirham.
Recovery made by Emirates’ currency as its demand shown some rising trend today. The UAE dirham opened new day’s trading at Rs.23.25 appreciated in its value due to demand and was changing hands at Rs.23.30 on Thursday.
