Friday, September 20th, 2019
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The rupee moved both ways against the dollar on the money market during the week, ended on Sept 7, 2019 The rupee recovered 30 paisas versus the dollar for buying and selling at Rs 156.30 and Rs 156.35.

INTER-BANK MARKET RATES: OPEN MARKET RATES: The rupee was inert in relation the dollar for buying and selling at Rs 156.20 and Rs 156.70. The rupee was almost unchanged in terms of the euro for buying and selling at Rs 171.50 and Rs 173.50.

According to the market sources, less buying interest among investors, helped the rupee to hold firmness versus the dollar. In the meantime, some of them were of the view that the dollar will move up in the near future. Country's foreign exchange reserves stood at 8.280 billion dollar, which expectedly will ease supply of dollars, they said.

INTER-BANK MARKET RATES: On Monday, the rupee picked up modestly versus the dollar on the money market for buying and selling at Rs 156.60 and Rs 156.65. On Tuesday, the rupee slipped versus the dollar for buying and selling at Rs 156.64 and Rs 156.66.

On Wednesday, the rupee picked up 44 paisas versus the dollar on the money market for buying and selling at Rs 156.20 and Rs 156.25. On Thursday, the rupee dropped modestly versus the dollar for buying and selling at Rs 156.57 and Rs 156.60. On Friday, the rupee picked up 27 paisas versus the dollar for buying and selling at Rs 156.30 and Rs 156.35.

OPEN MARKET RATES: On Sept 2, the rupee improved with slight gain in relation the dollar for buying and selling at Rs 156.20 and Rs 156.70. The rupee was available in terms of the euro for buying and selling at Rs 171.00 and Rs 173.50.

On Sept 3, the rupee was unchanged in terms of the dollar for buying and selling at Rs 156.20 and 156.70. The rupee was available in terms of the euro for buying and selling at Rs 171.00 and Rs 172.50.

On Sept 4, the rupee gained slightly in relation the dollar for buying and selling at Rs 156.10 and Rs 156.60. The rupee was available in terms of the euro for buying and selling at Rs 171.30 and Rs 173.30.

On Sept 5, the rupee appreciated by 10 paisas in relation to the greenback for buying and selling at Rs 156.00 and Rs 156.50 respectively, they said. The rupee was available in terms of the euro for buying and selling at R171.30 and Rs 173.30 respectively, they said.

On Sept 6, the rupee was unchanged in relation the dollar for buying and selling at Rs 156.00 and Rs 156.50. The rupee showed no change in terms of the euro for buying and selling at Rs 171.30 and Rs 173.30. On Sept 7, the rupee shed 20 paisas in relation the dollar for buying and selling at Rs 156.20 and Rs 156.70. The rupee also dropped the same amount in terms of the euro for buying and selling at Rs 171.50 and Rs 173.50.

OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the yen strengthened on Monday, thanks to bigger appetites for safe-haven assets as Washington and Beijing put additional tariffs on each other's exports, adding to the gloom hanging over the global economic outlook. The yen rose around 0.1% versus to dollar to 106.15 in Asian trading.

The Japanese currency rose around 0.2% to 71.43 versus the Australian dollar and advanced around 0.2% to 66.88 per New Zealand dollar. Spot gold rose 0.29% to $1,524.05 per ounce. The euro stood at $1.0991, unchanged in Asia, but sentiment for the common currency was weak after it tumbled on Friday to the lowest in more than two years.

German Chancellor Angela Merkel's conservatives and her coalition partners held off a surge in far right support in two state elections in eastern Germany on Sunday. The dollar was available against the Chinese yuan at 7.160. In the second Asian trade, sterling neared its weakest against the US dollar in more than two years on Tuesday amid mounting uncertainty as British lawmakers prepared to vote on the first stage of a plan to block Prime Minister Boris Johnson from pursuing a no-deal Brexit.

Johnson's opponents will put forward a vote that would enable them to seize control of the parliamentary agenda on Wednesday to try to pass legislation that would force Johnson to seek a three-month delay to Britain's EU exit. Johnson has made it clear that if the government was defeated, it would hold a vote on Wednesday to approve an early election, most likely to be held on Oct 14.

The dollar was trading against the Indian rupee at Rs 71.400, the greenback was at 4.223 versus the Malaysian ringgit and the US currency was at 7.181 in relation to the Chinese yuan.

In the third Asian trade, the British pound bounced on Wednesday in the wake of a parliamentary vote opening the door for another Brexit delay, while the dollar drifted lower after weak manufacturing data stoked wagers on aggressive US policy easing.

The greenback's doldrums helped the Australian dollar shine when June-quarter economic growth, while soft, was in line with forecasts, and the currency rose 0.3% to reach a one-week peak of $0.6775.

Sterling, pushed to a near three-year low on Wednesday, climbed almost 0.2% against the dollar to $1.2100 and firmed 0.1% against the euro.

The dollar's weakness help pull the yuan from an 11-year low to reach 7.1669 per dollar. Its rise was tempered as traders kept a wary eye on trade risks, with US President Donald Trump promising a tougher line on Beijing if trade talks drag on.

The dollar was trading against the Indian rupee at Rs 72.170, the US currency was at 4.209 versus the Malaysian ringgit and the greenback was at 7.166 in terms of the Malaysian ringgit.

In the fourth Asian trade, risk-sensitive currencies such as the Aussie and yuan rallied on Thursday as investors cheered the announcement of US-China trade talks for next month and abandoned safe haven assets such as yen.

The Australian and New Zealand dollars, Chinese yuan and South Korean won all jumped against the dollar, while the yen fell nearly 0.4% to 106.75 per dollar, its cheapest in more than three weeks.

The dollar was trading against the Indian rupee at Rs 71.870, the greenback was at 4.191 versus the Malaysian ringgit and the US currency was at 7.133 in relation to the Chinese yuan.

In the final Asian trade, the Upbeat US economic data gave the dollar an edge over its peers on Friday, arresting a recent flight from the greenback while also supporting Asian currencies as investors toned down their recent gloom over the global economy.

Separate surveys suggested the world's largest economy is in better shape than investors had feared. US service sector activity accelerated in August and private employers boosted hiring beyond expectations.

It contributed to a broad risk-on shift in currency, bond and stock markets stoked by news that China-US trade talks would resume next month.

The data kept the dollar steady against most major currencies while investors waited for a monthly payrolls report due at 1230 GMT for the next snapshot on the labour market's health.

The dollar was trading against the Indian rupee at Rs 71.695, the greenback was at 4.175 in terms of the Malaysian ringgit and the US currency was at 7.146 versus the Chinese yuan.

In the final US trade, the dollar was marginally lower on Friday against a basket of currencies, holding above a one-week low as a mixed report on the US jobs market in August reinforced the view of a slowing expansion and chances of more interest rate cuts from the Federal Reserve.

Fed Chair Jerome Powell did little to ruffle those expectations. At an overseas event on Friday, he cited risks in particular US-China trade tensions that may derail the current US economic expansion, which is the longest one on record.

Copyright Business Recorder, 2019


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