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A kind of firmness prevailed on the money market as the rupee maintained a firm posture against the dollar during the week, ended on May 12, 2018. In the open market, the rupee posted fresh gains of 20 paisas against the dollar for buying at Rs 117.30 while it held it's level for selling at Rs 117.80. The rupee, however, lost 45 paisas versus the euro for buying and selling at Rs 139.75 and Rs 141.25, they added.

In the inter-bank, the rupee did not show any change in relation to the dollar for buying and selling at Rs 115.61 and Rs 115.62.

According to the market sources, the national currency managed to retain it's levels due to easy supply of dollars.

They also said that the supply of dollars may improve in the coming days, which will definitely help rupee to gain further ground in terms of the greenback.

OPEN MARKET RATES: On Monday, the rupee lost 80 paisas in terms of the greenback for buying at Rs 117.50 and the national currency also fell by 60 paisas for selling at Rs 117.80, they said. The rupee also shrugged off it's gains versus the euro for buying and selling at Rs 139.30 and Rs 141.00, they added.

On Tuesday, the rupee shed 60 paisas in terms of the greenback for buying at Rs 118.10 and the national currency also fell by 80 paisas for selling at Rs 118.60, they said. The rupee dropped by 20 paisas versus the euro for buying and selling at Rs 139.50 while the national currency was unchanged at Rs 141.00.

On Wednesday, the rupee gained 40 paisas versus the dollar for buying and selling at Rs 117.70 and Rs 118.20, they said. The rupee picked up 10 paisas in term of the euro for buying and selling Rs 139.40 and Rs 141.00.

On Thursday, the rupee rose by 20 paisas in relation to the greenback for buying and selling at Rs 117.50 and Rs 118.00. The rupee posted fresh gains of 55 paisas versus the euro for buying and selling at Rs 138.85 and Rs 140.20.

On Friday, the rupee picked up 20 paisas in relation to the greenback for buying and selling at Rs 117.30 and Rs 117.80. The rupee failed to keep rising trend, losing 75 paisas versus the euro for buying and selling at Rs 139.60 and Rs 141.10.

On Saturday, the rupee showed no change in relation to the greenback for buying and selling at Rs 117.30 and Rs 117.80. The rupee, however, fell by 15 paisas versus the euro for buying and selling at Rs 139.75 and Rs 141.25.

INTER-BANK MARKET RATES: On May 7, the rupee did not show any change in relation to the dollar for buying and selling at Rs 115.61 and Rs 115.62. On May 8, the rupee was unmoved in relation to the dollar for buying and selling at Rs 115.61 and Rs 115.62. May 9, the rupee was unchanged in relation to the dollar for buying and selling at Rs 115.61 and Rs 115.62, they said. On May 10, the rupee was unmoved in relation to the dollar for buying and selling at Rs 115.61 and Rs 115.62, they said. On May 11, the rupee stayed put against the dollar for buying and selling at Rs 115.61 and Rs 115.62.

OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the dollar stayed near its 2018 peak on Monday after US jobs and wages data did little to temper perceptions of strength in the US economy, though renewed concerns about trade frictions could cloud its outlook.

The dollar index stood at 92.461, down 0.1 percent but still near Friday's high of 92.908, which was its firmest level since late December.

The dollar index has risen for three straight weeks, maintaining its strength after Friday's mixed US data.

The dollar was trading against the Indian rupee at Rs 67.105, the greenback was at 3.941 in terms of the Malaysian ringgit and the US currency was at 6.358 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Monday: 83.10-83.10 (Previous 82.98-82.98).

In the second Asian trade, the dollar hovered near a four-month high on Tuesday, continuing to draw support from higher Treasury yields and upbeat prospects for the US economy, leaving its major rivals such as the euro struggling and others including the Argentine peso down sharply.

The market's attention was on US President Donald Trump's decision about the future of an international nuclear agreement with Iran, which he has repeatedly threatened to withdraw from.

The dollar was trading against the Indian rupee at Rs 67.270, the greenback was at 3.947 versus the Malaysian ringgit and the US currency was at 6.366 in relation to the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Tuesday: 83.10-83.10 (Previous 83.10-83.10).

In the third Asian trade, the dollar stood tall over the euro on Wednesday as concerns about Italian political turmoil hurt the common currency, with the greenback stabilising after briefly being stirred by US President Donald Trump's decision to exit a nuclear deal with Iran.

The euro was little changed at $1.1867 after sliding as low as $1.1838 overnight, its weakest since Dec. 22.

The common currency was a shade lower at 129.400 yen and on its eighth session of losses, having plumbed a six-week low of 129.240 on Tuesday.

The dollar was trading against the Indian rupee at Rs 67.340, the greenback was at 3.948 versus the Malaysian ringgit and the US currency was at 6.373 in relation to the Chinese yuan.

In the fourth Asian trade, the dollar held firm on Thursday after the 10-year US bond yield popped above the psychologically important 3 percent mark and investors looked to US consumer price data later in the day that could show acceleration in inflation.

The dollar index stood little changed against a basket of six major currencies at 93.02 after hitting a 4-1/2-month high of 93.42, extending its gains from its April low to 4.7 percent.

"Rises in US interest rates are pushing the dollar higher," said Ayako Sera, market economist at Sumitomo Mitsui Trust Bank, noting that investor sentiment is stronger now than in February when worries about higher rates hit stock prices.

The dollar war available in relation to the dollar at 67.390 and the greenback was trading at 6.365 against the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Thursday. 83.10-83.10 (Previous 83.10-83.10).

In the final Asian trade, the dollar hovered below a 4-1/2-month high against a basket of major currencies on Friday after tepid US inflation data prompted traders to pare bets of faster rate hikes.

US consumer prices rose less than expected in April, which would support gradual, rather than more aggressive, rate increases by the Federal Reserve.

"Given recent rises in oil prices, a weaker dollar earlier this year, and US tax cuts, markets were clearly worried more about upside risks in inflation," said Minori Uchida, chief currency strategist at MUFG Bank.

The so-called core CPI, which strips out the volatile food and energy components, rose 0.1 percent from previous month, compared to economists' median forecast of 0.2 percent rise. The dollar was available against the Indian rupee at Rs 67.205 and the greenback was at 6.344 in relation to the Chinese yuan.

The dollar fell for a third day on Friday against a basket of currencies as traders booked gains on its recent run-up spurred by the widening interest rate gaps in favour of the United States and signs of cooling growth in the rest of the world.

The Swedish crown continued its rally, as more traders exited their bearish bets on hints that some Riksbank officials are open to raising interest rates despite worries about low inflation.

The euro rose for a second day as the greenback retreated further from a 2018 peak reached earlier this week. The single currency, however, was still on track for a loss for a fourth straight week against the dollar.

Copyright Business Recorder, 2018


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