As a result of panic buying of dollars in the inter-bank market, the rupee came under pressure versus the dollar, resulting it was available at Rs 110. Money expert, Malik Bostan commenting on the direction the money market said that rupee may not fluctuate sharply in the near future. Other experts said that the remittances could reach 40 to 50 billion dollars in the next few years, if the government announces incentives on the investment made by expatriate Pakistanis, adding that expatriates may be encouraged to invest in the sectors like energy, agriculture, telecommunication and IT.
They also urged the government to remove all hurdles that are impeding smooth inflow of the foreign remittances to Pakistan. They also said that the government should discourage the Hawala system, this factor may help the rupee to hold firmness in the coming days.
OPEN MARKET RATES: On Monday, the national currency was unchanged versus the dollar for buying and selling at Rs 107.30 and Rs 107.50. The rupee, however, rose by 15 paisas versus the euro for buying and selling at Rs 126.60 and Rs 127.85. On Tuesday, the national currency shed 10 paisas against the dollar for buying and selling at Rs 107.40 and Rs 107.60. The rupee also shed 20 paisas versus the euro for buying and selling at Rs 126.80 and Rs 128.05. On Wednesday, the national currency recovered 10 paisas against the dollar for buying and selling at Rs 107.30 and Rs 107.50.
The rupee, however, gained 50 paisas versus the euro for buying and selling at Rs 126.30 and Rs 128.55. On Thursday, the national currency held the overnight levels against the dollar for buying and selling at Rs 107.30 and Rs 107.50, they said.
The rupee picked up 30 paisas versus the euro for buying and selling at Rs 126.00 and Rs 127.25, they said. On Friday, the national currency shed 20 paisas against the dollar for buying Rs 107.50 and it also lost 50 paisas for selling Rs 108.00, they said. The rupee, however, gained 40 paisas versus the euro for buying and selling at Rs 125.60 and Rs 126.85.
INTER-BANK MARKET RATES: On Dec 4, the rupee slipped by one paisa in terms of the dollar for buying and selling at Rs 105.51 and Rs 105.52. On Dec 5, the rupee fell by one paisa in terms of the dollar for buying at Rs 105.52 and it also shed three paisas for selling at Rs 105.55. On Dec 6, the rupee fell by two paisa in terms of the dollar for buying at Rs 105.54, while it did not move any side for selling at Rs 105.55. On Dec 7, the rupee held the overnight levels in terms of the dollar for buying and selling at Rs 105.54 and Rs 105.55. On Dec 8, the rupee was available in terms of the dollar for buying and selling at Rs 106.75 and Rs 107.25, dealers said.
OVERSEAS MARKET OUTLOOK: In the first Asian trade, the dollar was broadly higher on Monday, reaching a 2-1/2-week peak against the yen, lifted after the US Senate approved a tax overhaul at the weekend. The Senate's approval on Saturday moves Republicans and President Donald Trump a big step closer to their goal of slashing taxes in what would be the largest change to US tax laws since the 1980s.
The dollar was trading against the Indian rupee at Rs 64.46, the greenback was at 4.081 in terms of the Malaysian ringgit and the US currency was at 6.612 versus the Chinese yuan. In the second Asian trade, the dollar dipped on Tuesday, as investors waited to see how the next step of the US tax reform legislation proceeds rather than extend the rise made by the dollar at the start of the week following the US Senate's approval of the tax bill. The dollar index against a basket of six major currencies eased 0.15 percent to 93.050 after gaining about 0.3 percent the previous day.
The euro was a shade higher at $1.1874 after losing 0.3 percent overnight. The dollar nudged up to 112.550 yen, but remained well off the 2-1/2-week high of 113.090 struck on Monday. The dollar was available against the Indian rupee at Rs 64.38, the greenback was trading versus the Malaysian at 4.054 and US currency was at 6.614 in terms of the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Tuesday 82.40-82.40 (Previous 82.30-82.30).
In the third Asian trade, the dollar edged down on Wednesday, as concerns about a possible US government shutdown offset optimism about progress on tax reform legislation, while the Australian dollar weakened after economic data showed worrying signs for growth. The dollar index, which tracks the greenback against a basket of six major currencies, inched 0.1 percent lower to 93.297.
The euro was steady on the day at $1.1828, while the dollar edged down 0.1 percent against its Japanese counterpart to 112.38 yen. Sterling, already under pressure amid evaporating hopes for a near-term Brexit accord, dipped on Wednesday after a report of a failed plot to kill UK Prime Minister Theresa May.
The dollar was trading against the Indian rupee at Rs 64.46, the greenback was at 4.065 versus the Malaysian ringgit and the greenback back was at 6.614 in terms of the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Wednesday: 82.40-82.40 (Previous 82.40-82.40). In the fourth Asian trade, the dollar edged up against peers on Thursday, shaking off earlier losses versus the yen, supported by signs that investors' risk appetites were improving again and by optimism on US tax reforms. The dollar had slipped against the yen after President Donald Trump on Wednesday recognised Jerusalem as the capital of Israel, imperilling Middle East peace efforts and upsetting Washington's friends and foes alike.
"The impact of the 'risk off' moves that weakened the dollar against the yen stemming from the Middle East developments appears to have been limited. It likely served as a pretext for speculators to cover some yen shorts," said Yukio Ishizuki, senior currency strategist at Daiwa Securities in Tokyo. Inter bank buy/sell rates for the taka against the dollar on Thursday: 82.50-82.50 (Previous 82.40-82.40). In the final Asian trade, Sterling rose while the euro edged down, as traders waited to see if British Prime Minister Theresa May has finally clinched an elusive deal with Irish and EU officials on how they would run their post-Brexit Irish land border.
The US dollar was higher against a basket of currencies, on track for a weekly gain, as the passage of a bill to temporarily extend US government funding raised investors' optimism that a tax reform bill would also pass. The euro inched down 0.1 percent to $1.1761, around its lowest levels since Nov. 22. It was on track to shed 1.1 percent for the week, but is still up nearly 12 percent so far in 2017.
The dollar was available against the Indian rupee at 64.49, the greenback was at 4.085 in terms of the Malaysian ringgit and the US currency was trading versus the Chinese yuan at 6.618. In the final NY trade, the dollar rose against the euro and yen in choppy trading after a report showed the US economy created more jobs than expected last month, but gains were capped by wages data that analysts said were disappointing. That could weigh on the pace of interest rate rises next year as the Federal Reserve grapples with sluggish wages that reflect persistently low inflation, analysts said.
The dollar came off three-week highs after the report, while the euro, although still down on the day, recouped some of those losses. US non-farm payrolls rose by 228,000 jobs in November amid broad gains in hiring as distortions from recent hurricanes faded. The dollar index was up 0.1 percent at 93.899.
Copyright Business Recorder, 2017