According to reports, after a sharp devaluation of the rupee versus the dollar, Finance Minister Ishaq Dar said that the government will launch an inquiry into why the rupee plunged 3.1 percent a day earlier. Analysts said the State Bank of Pakistan (SBP) had effectively allowed the Pakistani rupee to devalue by 3.1 percent after nearly two years of being stable at about 104-105 rupees to the dollar. The rupee weakened 3.25 percent in trading against the dollar on Wednesday in what analysts speculated could be a central bank-led devaluation to shore up the economy.
INTERBANK MARKET RATES: On July 3, the rupee-dollar parity rates not issued due to bank closing. On July 4, the rupee slipped by four paisa versus the dollar for buying and selling at Rs 104.90 and Rs 104.91. On July 5, the rupee lost around 3.25 percent versus the dollar for buying and selling at Rs 108.15 and Rs 108.20. On July 6, the rupee recovered Rs 2.66 against the dollar for buying and selling at Rs 105.50 and Rs 106.00, they said.
OPEN MARKET RATES: On Monday, the rupee held last closing levels in relation to the dollar for buying and selling at Rs 105.80 and Rs 106.00. The rupee managed to recover 40 paisas against the euro for buying and selling at Rs 119.60 and Rs 120.60. On Tuesday, the rupee lost 10 paisas in relation to the dollar for buying and selling at Rs 105.90 and Rs 106.10, they said.
The rupee, however, gained 30 paisas against euro for buying and selling at Rs 119.30 and Rs 120.30. On Wednesday, the rupee lost sharply against the dollar for buying and selling at Rs 107.50 and Rs 108.25. On Thursday, the rupee followed the suit in the open market, picking up Rs 1.20 in relation to the dollar for buying and selling at Rs 106.30 and Rs 106.80. The rupee was available against euro for buying and selling at Rs 120.00 and Rs 121.50.
OPEN MARKET RATES: The rupee gained 30 paisa in relation to the dollar for buying at Rs 106.00 and it also picked up 50 paisa in terms of the dollar for selling and Rs 106.30, they said. The rupee shed 30 paisas against euro for buying and selling at Rs 120.30 and Rs 121.30.
OVERSEAS MARKET OUTLOOK: In the first Asian trade, the dollar edged off from a nine-month low against a basket of currencies, but it remained shaky as signs central banks in Europe were moving away from accommodative monetary policies kept the euro and sterling well bid.
The dollar index against a group of six major currencies was 0.05 percent higher at 95.675, crawling off a nine-month trough of 95.470 plumbed on Friday. The greenback was hit hard last week as hawkish comments from central bankers increased expectations that the European Central Bank (ECB), the Bank of England and Bank of Canada would eventually shift to tighter monetary policy.
The dollar was little changed at 112.290 yen after briefly falling to 111.900 earlier before climbing back quickly. The dip was seen as a knee-jerk reaction to Japanese Prime Minister Shinzo Abe's Liberal Democratic Party suffering an historic defeat in an election in the capital Tokyo on Sunday, signalling potential trouble ahead for the premier.
That the BoE and BOC now appear to be in a hurry to normalise monetary policy was a big surprise last week." The euro was 0.05 percent lower at $1.1422 after reaching a near 14-month high of $1.1445 on Friday. The dollar was trading against the Indian rupee at Rs 64.665, the greenback was at 64.58 in terms of the Malaysian ringgit and the US currency was at 4.296 versus the Chinese Yuan Inter bank buy/sell rates for the taka against the dollar on Monday.
In the second Asian trade, the dollar steadied after rallying on upbeat US data that boosted Treasury yields to seven-week highs, while the focus turned to the Reserve Bank of Australia's policy decision to see if it would join a growing list of central banks adopting a hawkish tilt. The dollar index against a basket of six major currencies was a shade lower at 96.125 after rising 0.6 percent overnight as a stronger-than-expected rise in the June Institute of Supply Management (ISM) national factory activity index propelled the 10-year Treasury yield to its highest since May 16. The euro was effectively flat at $1.1369 after dropping 0.6 percent overnight. The dollar was trading against the Indian rupee at Rs 64.843, the greenback was at 4.297 in terms of the Malaysian ringgit and the US currency was available at 6.797 versus the Chinese Yuan. Inter bank buy/sell rates for the taka against the dollar on Tuesday.
The dollar slipped against the yen on Wednesday. The dollar was trading against the Indian rupee at Rs 64.720, the US currency was at 4.295 in terms of the Malaysian ringgit and the greenback was at 6.795 versus the Chinese Yuan, they said. In the third Asian trade, the dollar slipped against the yen on concerns about rising tensions between the United States and North Korea while the Canadian dollar held firm after the nation's central bank chief backed an interest rate increase. The dollar shed 0.3 percent in early trade to fetch 113.00 yen, slipping further from Monday's 1-1/2-month high of 113.48.
The yen tends to be bought back at times of heightened global uncertainty because of expectations Japanese investors may repatriate their foreign investment, despite the country's proximity to North Korea.
In the fourth Asian trade, the dollar steadied against its peers after the Federal Reserve's policy meeting minutes took the wind out of its advance, with the market awaiting comments by central bankers and US data for its next cues. The dollar index against a basket of major currencies was flat at 96.275, having slid from a one-week high of 96.512 touched on Wednesday.
"Overall, the Fed's meeting minutes sounded hawkish in my view, as the possibility was mentioned for the reduction of its balance sheet in the near-term. But the dollar still slipped, showing that it has become top-heavy," said Masafumi Yamamoto, chief forex strategist at Mizuho Securities in Tokyo. The dollar was trading against the Indian rupee at Rs 64.765, the greenback was at 4.297 in terms of the Malaysian ringgit and the US currency was available at 6.802 versus the Chinese Yuan. Inter bank buy/sell rates for the taka against the dollar on Thursday.
In the final Asian trade, the dollar gained in Asian trading, getting a leg up against the yen after the Bank of Japan increased its purchases of Japanese government bonds in a move aimed at stemming a rise in yields. The dollar was on track for weekly gains, though investors were unlikely to push the upside significantly as they braced for monthly US employment data later in the global session, following some downbeat jobs figures overnight.
The dollar extended gains against its Japanese counterpart after the BOJ's move, rising 0.6 percent to 113.830 yen after touching a session high of 113.835 yen, its highest level since May 12. It was up 1.3 percent for the week. The BOJ offered to buy an unlimited amount of 10-year JGBs at yield of 0.110 percent and also increased its buying of five- to ten-year JGBs through an auction to 500 billion yen from 450 billion yen. The dollar index, which tracks the greenback against a basket of six major rivals, was 0.2 percent higher on the day at 95.947, up 0.3 percent for the week.
Copyright Business Recorder, 2017