Wednesday, October 16th, 2019
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The rupee posted modest gains versus the dollar in the inter-bank market while, it showed no variation in the open market during the week, ended on Sept 21, 2019. The rupee recovered modestly versus the dollar for buying and selling at Rs 156.05 and Rs 156.10.

INTER-BANK MARKET RATES: OPEN MARKET: The rupee sustained week-long levels in relation the dollar for buying and selling at Rs 155.80 and Rs 156.30. While, the rupee recovered 50 paisas in terms of the euro for buying and selling at Rs 171.00 and Rs 173.00.

Marketmen said that the rupee managed to hold present levels against the dollar in process of trading activity. Country's economy is progressing as imports came down, whereas the exports pick up slightly during the months, they observed.

It's a good sign under the circumstances when the country's foreign direct investment fell by 58.4 percent during the first two months of current fiscal year, they said.

To give a boost to industrial and business activity, the State Bank of Pakistan (SBP) kept the policy rate steady at 13.25 percent last week, they said.

It was surprising to note that the rupee held present levels against the dollar despite soaring oil prices in the global market, they noted.

In the world markets, oil surged to four-month highs after weekend attacks on crude facilities in Saudi Arabia sparked supply fears, while shares in Asia extended losses as bleak economic data from China sapped investors' appetite for riskier assets.

INTER-BANK MARKET RATES: On Monday, the rupee did not show sharp fluctuations versus the dollar for buying and selling at Rs 156.25 and Rs 156.30. On Tuesday, the rupee shed five paisas versus the dollar for buying and selling at Rs 156.30 and Rs 156.35, they said.

On Wednesday, the rupee recovered it's overnight losses versus the dollar, picking up five paisas for buying and selling at Rs 156.25 and Rs 156.30. On Thursday, the rupee recovered three paisas versus the dollar for buying and selling at Rs 156.23 and Rs 156.25. On Friday, the rupee recovered further 15 paisas versus the dollar for buying and selling at Rs 156.05 and Rs 156.10.

OPEN MARKET RATES: On Sept 16, the rupee was unchanged in relation the dollar for buying and selling at Rs 155.80 and Rs 156.30, they added.

Whereas, the rupee picked up 30 paisas in terms of the euro for buying and selling at Rs 171.50 and Rs 173.50, they added.

On Sept 17, the rupee was almost unchanged in relation the dollar for buying and selling at Rs 155.80 and Rs 156.30. The rupee rose by 30 paisas in terms of the euro for buying and selling at Rs 171.20 and Rs 173.20.

On Sept 18, the rupee was unchanged in relation the dollar for buying and selling at Rs 155.80 and Rs 156.30. The rupee lost 40 paisas in terms of the euro for buying and selling at Rs 171.60 and Rs 173.60.

On Sept 19, the rupee was unchanged in relation the dollar for buying and selling at Rs 155.80 and Rs 156.30. The rupee lost 90 paisas in terms of the euro for buying and selling at Rs 172.50 and Rs 174.50.

On Sept 20, the rupee did not show any change in relation the dollar for buying and selling at Rs 155.80 and Rs 156.30. The rupee recovered Re one in terms of the euro for buying and selling at Rs 171.50 and Rs 173.50.

On Sept 21, the rupee sustained week-long levels in relation the dollar for buying and selling at Rs 155.80 and Rs 156.30. While, the rupee recovered 50 paisas in terms of the euro for buying and selling at Rs 171.00 and Rs 173.00.

OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the dollar fell while safe havens and currencies of oil-producing countries rallied on Monday, following an attack on Saudi Arabian refining facilities that disrupted global oil supply and heightened Middle East tensions.

Oil prices surged nearly a fifth at one point following the strikes on two plants, including the world's biggest petroleum processing facility in Abqaiq, which knocked out more than 5% of global oil supply.

Yemen's Iran-aligned Houthi group claimed responsibility for the damage, but the US has pointed the finger directly at Iran.

The Canadian dollar rose 0.4% to 1.3233 per dollar. The Norwegian krone rose 0.5% to 8.9363 per dollar. Both currencies often move together with the oil price because the countries are major oil exporters.

The dollar was trading against the Indian rupee at Rs 71.535 and the greenback was at 7.071 in terms of the Chinese yuan.

In the second Asian trade, the greenback found broad support on Tuesday amid the geo-political, and economic uncertainties cast by the attacks on Saudi oil facilities, while the Australian dollar was sharply sold after a dovish readout from the central bank.

Oil prices pulled back from soaring heights touched on Monday, and the yen and Swiss franc gave up gains driven by knee-jerk safe-haven buying.

The dollar rose to its strongest since August 1 against the yen, touching 108.36 yen, helped also by US President Donald Trump announcing he'd struck trade agreements with Tokyo.

The dollar was trading against the Indian rupee at Rs 71.593, the greenback was at 4.177 in terms of the Malaysian ringgit and the US currency was available at 7.075 in relation to the Chinese yuan.

In the third Asian trade, the dollar traded near a seven-week high versus the yen on Wednesday as oil markets slowly recovered from a supply shock, but markets were cautious ahead of a US Federal Reserve meeting later in the day that is expected to deliver another interest rate cut.

The dollar was trading against the Indian rupee at Rs 71.415, the greenback was 4.183 versus the Malaysian ringgit and the US currency was available at 7.087 in relation to the Chinese yuan.

In the fourth Asian trade, the dollar found broad support on Thursday after the US Federal Reserve cut interest rates, as expected, but offered mixed signals about future easing, while weak employment figures hit the Australian currency.

The dollar was available against the Indian rupee at Rs 71.250, the greenback was at 4.195 in terms of the Malaysian ringgit and the US currency was at 7.102 versus the Chinese yuan.

In the final Asian trade, the dollar drifted lower on Friday after central banks in Switzerland and the UK refrained from following the Federal Reserve in cutting rates, and risk appetites ebbed on caution about U.S-China trade talks.

The dollar was available against the Indian rupee at Rs 70.878, the greenback was at 4.176 in terms of the Malaysian ringgit and the US currency was at 7.085 versus the Chinese yuan.

In the final US trade, the US dollar rose against a basket of currencies on Friday, for its first weekly increase in three, prompted by hopes of progress in US-China trade talks and that the Federal Reserve would not lower rates aggressively.

Sterling retreated from a two-month high versus the greenback after the Irish foreign minister said that London and the European Union were not yet close to a Brexit deal.

US and Chinese deputy trade negotiators are set to continue talks that began on Thursday in an effort to lay the groundwork for high-level discussions in early October that will determine whether the world's biggest economies can reach a trade deal. While tariffs and worries about protracted supply-chain disruption have hampered global business activity, the US economy is still faring relatively well, analysts said.

Copyright Business Recorder, 2019


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