Wednesday, August 5th, 2020
Home »Money and Banking » Pakistan » Rupee » THE RUPEE: weak trend

The rupee fell modestly against the dollar, it, however, gained in terms of the euro on the money market during the week, ended on February 24, 2018. In the open market, the rupee lost 50 paisas in terms of the dollar for buying and selling Rs 111.90 and Rs 112.20, the rupee, however, managed to gain in relation to the euro, picking up 75 paisas for buying and selling at Rs 136.75 and Rs 138.25.

In the inter-bank market, the rupee traded almost around Rs 110.57 and Rs 110.58 versus the dollar. Commenting on the rising demand for dollars, some experts said that in fact, when dollars' buying increases, the rupee dropped it's value.

Besides, they observed that import bill surged due to rise in oil prices to 11.6 billion dollars in the first seven months of current fiscal year as a result of an increase in the global prices of crude and grams.

Furthermore, the State Bank of Pakistan (SBP), the reserves declined to 18.8 billion dollars. The government had held back exchange rate for long, but recently allowed around five percent adjustment in the rupee-dollar parity. However, more flexibility is needed to move in the desired direction. He further said that the World Band would issue revised growth rate targets in its upcoming report.

According to the market sources, number of buyers increased which helped the dollar to move up in terms of the rupee. During the day, the rupee crossed the barrier of Rs 112 against the US currency, it seems, the dollar is likely to gain further strength in the coming days, they added.

OPEN MARKET RATES: On Monday, the rupee gave yo 10 paisas in relation to the dollar for buying and selling Rs 111.40 and Rs 111.70, they said. The rupee also shed 20 paisas against the euro for buying and selling at Rs 137.50 and Rs 139.00, they added.

ON Tuesday, the rupee dropped by 10 paisas in relation to the dollar for buying and selling Rs 111.50 and Rs 111.80, they said. The rupee, however, gained 70 paisas against the euro for buying and selling at Rs 136.80 and Rs 138.30.

On Wednesday, the rupee continued slide against the dollar, losing 10 paisas more for buying and selling Rs 111.60 and Rs 111.90. The rupee, however, inched up against the euro, picking up five paisas for buying and selling at Rs 136.75 and Rs 138.25.

On Thursday, the rupee lost further 30 paisas against the dollar for buying and selling Rs 111.90 and Rs 112.20. The rupee, however, gained 15 paisas in terms of the euro for buying and selling at Rs 136.60 and Rs 138.10.

On Friday, the rupee did not move any side in terms of the dollar for buying and selling Rs 111.90 and Rs 112.20. The rupee, however, lost 40 paisas in relation to the euro for buying and selling at Rs 137.00 and Rs 138.50.

On Saturday, the rupee sustained overnight levels in terms of the dollar for buying and selling Rs 111.90 and Rs 112.20. The rupee managed to extend overnight gains in relation to the euro, picking up 25 paisas for buying and selling at Rs 136.75 and Rs 138.25.

INTER-BANK MARKET RATES: On February 19, the rupee moved slightly in relation to the dollar for buying and selling at Rs 110.55 and Rs 110.56. On February 20, the rupee moved cautiously versus the dollar for buying and selling at Rs 110.56 and Rs 110.58. On February 21, the rupee traded within a tight range versus the dollar for buying and selling at Rs 110.57 and Rs 110.58. On February 22, the rupee did not fluctuate sharply versus the dollar for buying and selling at Rs 110.57 and Rs 110.58. On February 23, the rupee was unchanged versus the dollar for buying and selling at Rs 110.57 and Rs 110.58.

OVERSEAS OUTLOOK FOR DOLLARS VS OTHER CURRENCIES: In the first Asian trade, the dollar found some traction on Monday following last week's steep fall and managed to hold above a three-year low against a basket of currencies.

The dollar index against a group of six major peers was mostly steady at 89.045 after enjoying a modest bounce on Friday following its descent to 88.253, its lowest since December 2014.

The US currency has been weighed down by a variety of factors this year, including concerns that Washington might pursue a weak dollar strategy and the perceived erosion of its yield advantage as other countries start to scale back easy monetary policy.

The dollar was trading against the Indian rupee at Rs 64.210 and the greenback was at 3.88 in terms of the Malaysian ringgit. Inter bank buy/sell rates for the taka against the dollar on Monday: 82.94-82.94 (Previous 82.94-82.94).

In the second Asian trade, the dollar inched higher versus a basket of major currencies on Tuesday, clinging above a three-year low set last week, but its outlook was clouded by concerns that the ballooning US fiscal deficit could disrupt the economy.

The dollar's index versus six major peers stood at 89.347, about 1.2 percent above Friday's three-year low of 88.251.

The dollar has been weakening in recent months, with the positive impetus from rising US interest rates offset by a barrage of bearish factors.

Initially, the view that other central banks will catch up with the Federal Reserve in tightening policy this year was cited as a reason for the dollar's underperformance.

The dollar was available against the Indian rupee at Rs 64.520, the greenback was at 3.894 in terms of the Malaysian ringgit and the US currency was at 6.345 in relation to the Chinese yuan.

In the third Asian trade, the dollar inched higher on Wednesday as the near-term focus shifted to the minutes of the Federal Reserve's last policy meeting for hints on the future pace of US monetary tightening.

The dollar index rose 0.1 percent to 89.805, which was up about 1.8 percent from Friday's three-year low of 88.251.

The greenback rose 0.3 percent to 107.70 yen. Market players said stop-loss dollar buying gave an added lift to the dollar, which rose to 107.90 yen at one point.

The US currency has weakened against the yen and other major currencies in recent months, with the positive impetus from rising US interest rates offset by bearish factors, including worries that the United States could pursue a weaker dollar policy.

The dollar was trading against the Indian rupee at Rs 64.820, the greenback was at 3.907 in terms of the Malaysian ringgit and the US currency was at 6.345 versus the Chinese yuan.

In the third Asian trade, the dollar rose to a one-week high against a basket of major currencies on Thursday, after minutes of the Federal Reserve's January meeting showed policymakers were more confident of the need to keep raising interest rates.

The dollar index edged up 0.1 percent to 90.099: Earlier, it climbed to 90.166, the highest level since February 13. That lifted it about 2.2 percent from a three-year low near 88.25 plumbed last week.

A more upbeat take on inflation in the minutes of the Fed's January 30-31 policy meeting bolstered expectations for rate hikes. US short-term interest-rate futures continued to reflect firm expectations that the Fed will raise rates three times this year.

The dollar was available against the Indian rupee at Rs 64.990, the greenback was at 3.915 in terms of the Malaysian ringgit and the US currency was at 6.349 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Thursday: 82.94-82.94 (Previous 82.94-82.94).

In the fourth Asian trade, the dollar rose to a one-week high against a basket of major currencies on Thursday, after minutes of the Federal Reserve's January meeting showed policymakers were more confident of the need to keep raising interest rates.

The dollar index edged up 0.1 percent to 90.099. Earlier, it climbed to 90.166, the highest level since February 13. That lifted it about 2.2 percent from a three-year low near 88.25 plumbed last week.

A more upbeat take on inflation in the minutes of the Fed's January 30-31 policy meeting bolstered expectations for rate hikes. US short-term interest-rate futures continued to reflect firm expectations that the Fed will raise rates three times this year.

The dollar was available against the Indian rupee at Rs 64.990, the greenback was at 3.915 in terms of the Malaysian ringgit and the US currency was at 6.349 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Thursday: 82.94-82.94 (Previous 82.94-82.

In the final Asian trade, the dollar edged up against the yen and other currencies on Friday, trimming earlier losses, as global investors gingerly dipped their toes back into riskier assets amid rapidly shifting views on US monetary policy.

The dollar edged up 0.1 percent to 106.850 yen. It had dropped nearly 1 percent overnight as US Treasury yields retreated from four-year peaks.

The dollar was available against the Indian rupee at Rs 64.840, the greenback was at 3.908 in terms of the Malaysian ringgit and the US currency was trading against Chinese yuan at 6.34.

In the final NY trade, the dollar edged higher against a basket of major currencies on Friday, extending its recovery from a three-year low last week, as the potential for a more aggressive US Federal Reserve prompted investors to pare bearish bets against the greenback.

The dollar index, which measures the greenback against a basket of six other major currencies, was up 0.12 percent at 89.847. The index hit a three-year low of 88.253 on February 16.

You have seen sentiment around the dollar shift," said Charles Tomes, senior investment analyst and trader at Manulife Asset Management in Boston.

Copyright Business Recorder, 2018


the author

Top
Close
Close