Tuesday, September 26th, 2017
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The rupee fell against the dollar on the money market during the week, ended on July 15, 2017. The rupee dropped sharply versus the dollar for buying and selling at Rs 106.37 and Rs 106.40.

INTER-BANK MARKET RATES: OPEN MARKET RATES: The rupee also lost 50 paisas in terms of the dollar for buying and selling at Rs 106.70 and Rs 107.00. Following the same pattern, the rupee also lost sharply against the euro for buying and selling at Rs 121.30 and Rs 122.30.

The rupee managed to resist erosion against the dollar due to slight improvement in supply position, money experts said. They also said that the rupee may stay firm or move slightly in relation to the dollar, they said.

INTER-BANK MARKET: On Monday, the rupee was trading versus the dollar for buying and selling at Rs 105.05 and Rs 105.25.

On Tuesday, the rupee lost 25 paisas versus the dollar for buying at Rs 105.30 and 15 paisas for selling Rs 105.40. On Wednesday, the rupee did not move sharply versus the dollar at Rs 105.30 and Rs 105.40. On Thursday, the rupee moved in a narrow band versus the greenback for buying and selling at Rs 105.32 and Rs 105.34. On Friday, the rupee shed five paisas against the dollar for buying at Rs 106.37 and also dropped six paisas for selling at Rs 106.40.

OPEN MARKET RATES: On July 10, the rupee was moving against the dollar for buying and selling within the band of Rs 106.20 and 106.40, while it was available versus the euro at Rs 120.25 and Rs 121.25, dealers said.

On July 11, the rupee lost 20 paisas versus the dollar at Rs 106.90 and Rs 106.90, dealers said. The rupee was trading in terms of euro at Rs 121.25 and Rs 122.25, they said.

On July 12, the rupee maintained overnight levels against the dollar for buying and selling at Rs 106.20 and Rs 106.40, however, it lost 15 paisas against euro for buying and selling at Rs 120.40 and Rs 121.40.

On July 13, the rupee picked up 10 paisas against the dollar for buying and selling at Rs 106.50 and 106.80, they said. The rupee was trading against the euro for buying and selling at Rs 120.80 and Rs 121.81, they said. On July 14, the rupee also lost 20 paisas in relation to the dollar each for buying and selling counters at Rs 106.70 and Rs 107.00. Following the same pattern, it also shed 10 paisas against euro for buying and selling at Rs 120.90 and Rs 121.90.

On July 15, the rupee maintained overnight levels in relation to the dollar each for buying and selling counters at Rs 106.70 and Rs 107.00. It, however, lost 40 paisas against euro for buying and selling at Rs 121.30 and Rs 122.30.

OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the Canadian dollar dipped against its US counterpart on Monday as oil prices fell, pulling back from a nearly 10-month high last week, while investors awaited a Bank of Canada interest rate decision on Wednesday.

The US dollar climbed against a basket of major currencies, boosted by robust jobs data on Friday, although investors were wary of adding big positions before Federal Reserve chief Janet Yellen's testimony this week. The dollar was trading against the Indian rupee at Rs 64.500, 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. In the second Asian trade, the dollar's advance against its major peers slowed on Tuesday as a rise in sovereign bond yields paused, with investors awaiting comments from Federal Reserve Chair Janet Yellen for fresh cues on policy direction.

The dollar was 0.1 percent higher at 114.190 yen following a rise to a two-month high of 114.300 overnight. The euro was effectively flat at $1.1394 after inching down about 0.1 percent the previous day. "The dollar is capped as the surge in German bund yields stopped overnight and in turn dragged down US Treasury yields. The recent surge in bond yields appears overdone and we are seeing a bit of a correction," said Yukio Ishizuki, senior currency strategist at Daiwa Securities. The dollar was trading against the Indian rupee at Rs 64.480, the greenback was at 4.296 in terms of the Malaysian ringgit and the US currency was available at 6.894 versus the Chinese yuan.

Most Asian currencies were higher on Wednesday against the dollar, which was hit by new suggestions of Russian influence in the 2016 U.S. presidential election and amid wider caution ahead of Federal Reserve chair Janet Yellen's semi-annual congressional address.

The dollar index, which tracks the greenback against six major rivals, was 0.09 percent lower at 95.580 at 0540 GMT.

In the fourth Asian trade, the dollar dipped against its peers on Thursday after Federal Reserve Chair Janet Yellen did not sound as hawkish as many had anticipated, while the Canadian dollar stood near a 13-month high after its country's central bank hiked interest rates for the first time since 2010.

The US economy is healthy enough for the Fed to raise rates and begin winding down its massive bond portfolio, though low inflation may leave the central bank with diminished leeway, Yellen said at her semi-annual appearance before Congress on Wednesday.

The dollar slipped as Yellen's comments sparked a significant decline in US Treasury yields. The dollar index against a basket of major currencies was down 0.15 percent at 95.606 after retreating to as low as 95.511 the previous day, its weakest in 12 days.

The dollar was trading against the Indian rupee at Rs 64.428, the greenback was at 4.287 in terms of the Malaysian ringgit and the US currency was available at 6.779 versus the Chinese yuan. In the final Asian trade, the dollar was little changed against a group of peers early on Friday, as currency investors remained cautious ahead of U.S. inflation data due later in the session, which is expected to set the greenback's near-term direction.

The US currency's recent advance, notably against the yen, has stalled towards the end of this week as Federal Reserve Chair Janet Yellen curbed some of the monetary tightening expectations that had supported the greenback. Signs of a pickup in U.S. inflation could reinforce views that the Fed would hike interest rates again sooner rather than later, which would lift Treasury yields and the dollar.

The dollar was trading against the Indian rupee at Rs 64.460, the US currency was at 4.293 in terms of the Malaysian ringgit and the greenback was at 6.781 versus the Chinese yuan. At the week-end, the dollar fell against a basket of major currencies on Friday, after weaker-than-forecast data on consumer prices and retail sales in June raised doubts about US economic growth and whether the Federal Reserve would raise interest rates again in 2017.

US consumer prices were unchanged in June and retail sales fell for a second straight month, pointing to tame inflation and soft domestic demand. Economists had forecast the CPI edging up 0.1 percent last month. Its drop of 0.1 percent in May and the lack of a rebound in June could trouble Fed officials who have largely viewed the recent moderation in price pressures as transitory.

"The CPI data begs the question, at what point does transitory becomes something that is more sustained, in terms of the softness," said Richard Franulovich, senior currency strategist at Westpac Banking Corp in New York. The dollar index, which tracks the greenback against six major rivals, was down 0.6 percent to 95.152 after earlier falling to 95.132, its lowest since September 2016.



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