In the open market, the rupee managed to hold overnight levels the dollar for buying and selling at Rs 107.00 and Rs 107.20. It, however, shed 25 paisas against the euro for buying and selling at Rs 113.25 and Rs 114.75. Some analysts were of the view that the dollar supply was enough to meet emerging demand of dollars.
Explaining the rupee's persistent firmness versus the dollar, the president of Forex Association of Pakistan (FAP) has said that to ward off speculative buying of dollars the State Bank of Pakistan (SBP) has taken precautionary measures whereas the FAP also gave a lot of suggestions to make sure availability of dollars in the market.
In past, sometime, even the dollar account holders were facing problems in withdrawing their dollar account, so the SBP has directed the commercial banks to provide US currency to all dollar account holders.
In past, to give a boost to textile exports, the rupee devalued to compete the international market, but it could not bear fruitful result.
The country's textile exports are not picking up due to high cost of production, other experts said. Bostan also said that the rupee is still overvalued; the national currency may gain further strength versus the dollar in the coming days.
It was observed that during the meeting of the FAP mission with the SBP governor on January 20, the rupee was trading at Rs 109 but in the discussion, the Association gave many suggestions to discourage dollar's strength, resulting dollar is now available at Rs 107 in terms of the dollar, he said.
In past, traditionally people preferred to keep dollars as a safe haven, but now the facts have changed, the small and big investors were investing in gold, property and other businesses. Though the dollars' demand discouraged as a result the rupee is gaining ground versus the dollar.
INTER-BANK MARKET RATES: On Monday, the rupee showed no change in terms of the dollar for buying and selling at Rs 104.85 and Rs 104.86. On Tuesday, the rupee held it's overnight levels in terms of the dollar for buying and selling at Rs 104.85 and Rs 104.86. On Wednesday, the rupee inched up by two paisas in terms of the dollar for buying and selling at Rs 104.83 and Rs 104.84. On Thursday, the rupee shed one paisa in terms of the dollar for buying and selling at Rs 104.84 and Rs 104.85. On Friday, the rupee inched down by one paisa in terms of the dollar for buying and selling at Rs 104.85 and Rs 104.86.
OPEN MARKET RATES: On February 27, the rupee also held it levels in relation to the dollar for buying and selling at Rs 107.00 and Rs 107.20. It, however, lost 50 paisas against the euro for buying and selling at Rs 113.00 and Rs 114.50.
On February 28, the rupee was unchanged against the dollar for buying and selling at Rs 107.00 and Rs 107.20. It, however, shed 25 paisas against the euro for buying and selling at Rs 113.25 and Rs 114.75. On March 1st, the rupee did not move any side against the dollar for buying and selling at Rs 107.00 and Rs 107.20, they said. It, however, gained 75 paisas against the euro for buying and selling at Rs 112.50 and Rs 114.00, they said.
On March 2nd, the rupee held the overnight levels against the dollar for buying and selling at Rs 107.00 and Rs 107.20, they said. It, however, gained 20 paisas against the euro for buying and selling at Rs 112.30 and Rs 113.80, they said.
On March 3rd, the rupee managed to hold weeks long levels versus the dollar for buying and selling at Rs 107.00 and Rs 107.20. It, however, shed 20 paisas against the euro for buying and selling at Rs 112.50 and Rs 114.00.
On March 4, the rupee managed to hold overnight levels the dollar for buying and selling at Rs 107.00 and Rs 107.20. It, however, lost 75 paisas against the euro for buying and selling at Rs 113.25 and Rs 114.75.
OVERSEAS OUTTLOOK FOR DOLALRS: In the first Asian trade, the dollar recouped some ground after dipping to a two-week low against the yen in Asian trading on Monday, but it lacked momentum as investors awaited this week's speech by US President Donald Trump for clues on tax reform.
Trump will make his first major policy address to Congress on Tuesday.
It is expected to include some details of his infrastructure spending and tax plans, but some market participants worry that a lack of fresh direction could disappoint investors and weigh on the dollar.
Treasury Secretary Steven Mnuchin said in a televised interview on Sunday that Trump will use the event to preview some elements of his sweeping plans to cut taxes for the middle class, simplify the tax system and make American companies more globally competitive with lower rates and changes to encourage US manufacturing.
The dollar added 0.2 percent to 112.20 yen, after falling as low as 111.920 yen earlier in the session, its lowest since February 9.
The euro was steady on the day at $1.0562, as concerns about France's upcoming election continued to weigh on the single currency.
The dollar was trading against the Indian rupee at Rs 66.71, the greenback was at 4.4410 in term of the Malaysian ringgit and the US currency was at 6.8769 in relation to the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Monday: 79.36-79.37 (previous 79.35-79.35).
In the second Asian trade, the dollar drifted on Tuesday, with its earlier advance halted by investors taking a wait-and-see approach ahead of US President Donald Trump's closely-watched Congressional address later in the day.
The dollar index was little changed at 101.150 against a basket of key currencies, after posting a modest gain the previous day, when it initially went as low as 100.690.
The dollar index rallied to a 14-year high soon after Trump won the US elections in November, boosted by hopes that he would introduce large fiscal stimulus and re-flationary plans.
But the greenback has sagged lately with the Trump administration yet to hammer out clear specifics, notably on tax reform, and focus has naturally turned to the president's first major address to Congress.
The dollar was trading against the Indian rupee at Rs 66.78, the greenback was at 4.4370 in terms of the Malaysian ringgit and the US currency was available at 6.8700 versus the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Tuesday: 79.37-79.37 (previous 79.36-79.37).
In the third Asian trade, the dollar spurted higher in Asian trade as Federal Reserve policy-setters fanned expectations of a rate hike this month, overshadowing a key speech by US President Donald Trump that offered little details on his stimulus.
The dollar index, which measures the greenback against a basket of six major peers was last up 0.1 percent at 101.45.
In a long-awaited speech to the Congress, Trump opened the door to a broad overhaul of the US immigration system and vowed to pursue massive tax relief for the middle class but stopped short of giving any details.
The dollar was trading against the Indian rupee at Rs 66.85, the greenback was at 4.4480 and the US currency was at 6.8776 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Wednesday: 79.38-79.39 (previous 79.37-79.37).
In the fourth Asian trade, the dollar hovered near a seven-week high on increasing signs given by Federal Reserve officials that the US central bank is seriously considering raising interest rates this month.
The dollar was available against the Indian rupee at Rs 66.73, the greenback was 4.4480 versus the Malaysian ringgit and the US currency was at 6.8842 in terms of the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Thursday: 79.40-79.40 (previous 79.38-79.39).
In the final Asian trade, the dollar slipped but remained on track for a solid weekly gain on growing expectations the US Federal Reserve will raise interest rates at its mid-March meeting, which led to a rise in US Treasury yields.
The dollar index, which gauges the greenback against a basket of six major currencies, was down 0.2 percent at 102.020 but not far from the previous session's high of 102.260, its loftiest peak since Jan. 11. For the week, it was up 0.9 percent.
Against the yen, the dollar fell 0.3 percent on the day to 114.11 after scaling a peak of 114.595 in the previous session, its highest since February 15. The dollar was up nearly 2 percent for the week.
The dollar was trading against the Indian rupee at Rs 66.84, the US currency was at 4.4530 versus the Malaysian ringgit and the greenback was at 6.9000 in terms of the Chinese yuan.
The dollar was trading against the Indian rupee at Rs 66.84, the US currency was at 4.4530 versus the Malaysian ringgit and the greenback was at 6.9000 in terms of the Chinese yuan.
At the week-end, the dollar slipped against a basket of major currencies after Federal Reserve Chair Janet Yellen said that raising interest rates this month would be appropriate as long as the economy continues to improve as expected.
Yellen's remarks follow hawkish comments in recent days from a slew of Fed speakers and cement a likely rate hike at the Fed's next meeting on March 15.
Analysts said the rate increase had largely been priced in before Yellen's comments, sending the dollar lower on Friday afternoon as some investors took profits.
The dollar index, which measures the greenback against a basket of six major currencies, was down 0.7 percent. It is up about 0.4 percent this week and on Thursday, hit a seven-week high of 102.26.
Futures traders now are pricing in an 86 percent chance of a Fed hike in March, up from 35 percent on Tuesday, according to the CME Group's FedWatch Tool.
Against the Japanese yen the greenback was down 0.24 percent.
The euro rebounded from recent weakness to rise 0.93 percent against the dollar after a poll showed French far-right candidate Marine Le Pen's chances in the country's presidential election dimming.
Copyright Business Recorder, 2017