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The rupee dropped modestly against the dollar on the money market during the week, ended on June 02, 2018. In the open market, the rupee lost 30 paisas against the dollar for buying and selling at Rs 118.50 and Rs 119.00. The rupee was unchanged versus the euro for buying and selling at Rs 138.00 and Rs 139.50.

In the inter-bank market, the rupee was almost unmoved against the dollar for buying and selling at Rs 115.61 and Rs 115.62. Commenting on the weakness of the rupee, some experts said that this is first time the dollar went up versus the rupee. The dollar traded as much as Rs 119.50 in the open market, but it was almost unmoved in the inter-bank market during the week, they said.

They attributed the fall in the rupee's value to low inflows and sharp decline in country's foreign exchange reserves.

These negative factors were giving an impression that the local currency to depreciate further in terms of the dollar in the coming days, they said. They also said that it looks that the rupee to heading to set new low versus the dollar.

Additionally, according to the state Bureau of Statistics, country's annual inflation rate jumped to 4.19 percent in May from 3.68 percent a month earlier. On a month-on-month basis, the inflation rate was 0.51 percent in May, the bureau said.

OPEN MARKET RATES: On Monday, the rupee sustained weekend levels in terms of the dollar for buying and selling at Rs 118.20 and Rs 118.70. The national currency, however, lost 50 paisas versus the euro for buying and selling at Rs 138.00 and Rs 139.50.

On Tuesday, the rupee was almost unchanged in terms of the dollar for buying and selling at Rs 118.20 and Rs 118.70. The national currency, gained sharply versus the euro for buying and selling at Rs 136.50 and Rs 138.00.

On Wednesday, the rupee shed 10 paisas in terms of the dollar for buying and selling at Rs 118.30 and Rs 118.80, they said. The rupee also lost Re.one versus the euro for buying and selling at Rs 137.50 and Rs 139.00, they said.

On Thursday, the rupee dropped 10 paisas in terms of the dollar for buying and selling at Rs 118.40 and Rs 118.90, they said. The rupee lost 80 paisas versus the euro for buying and selling at Rs 138.30 and Rs 140.00.

On Friday, the rupee shed 10 paisas more in terms of the dollar for buying and selling at Rs 118.50 and Rs 119.00. The rupee lost 70 paisas versus the euro for buying and selling at Rs 139.00 and Rs 140.50.

On Saturday, the rupee held the overnight levels against the dollar for buying and selling at Rs 118.50 and Rs 119.00. The rupee gained versus the euro for buying and selling at Rs 138.00 and Rs 139.50.

INTER-BANK MARKET RATES: On May 28, the rupee shed three paisas versus the dollar for buying and selling Rs 115.64 and Rs 115.65. On May 29, the rupee managed to hold overnight levels in relation to the dollar for buying and selling Rs 115.61 and Rs 115.62. On May 30, the rupee held the overnight levels in relation to the dollar for buying and selling Rs 115.61 and Rs 115.62. On May 31st, the rupee managed to hold overnight levels in relation to the dollar for buying and selling Rs 115.61 and Rs 115.62. On June 1st, the rupee sustained present levels in relation to the dollar for buying and selling Rs 115.61 and Rs 115.62.

OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the euro crawled off a 6-1/2-month low against the dollar on Monday, catching its breath after Italy's president tried to allay investor worries about political unrest in the country, although the prospect of a near-term election capped gains.

The euro was 0.45 percent higher at $1.1703 after falling on Friday to $1.1646, its lowest since mid-November, losing more than 1 percent on the week.

The common currency was up 0.45 percent at 128.065 yen after sinking on Friday to an 11-month low of 127.165. The euro was seen to have received a mild lift after Italian President Sergio Mattarella on Sunday rejected Paolo Savona, a vocal critic of the single currency, as the economy minister. The two populist parties attempting to form a coalition in Italy had pushed for Savona to be appointed to the pivotal role.

But the euro's bounce was limited as an early election in Italy looked inevitable as the far-right League and anti-establishment 5-Star Movement abandoned plans to forge an alliance after their choice of economy minister was vetoed.

The dollar was trading against the Indian rupee at Rs 67.430, the greenback was at 3.979 in relation to the Malaysian ringgit and the US currency was available at 6.390 in terms of the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Monday. 83.70-83.70 (Previous 83.70-83.70).

In the second Asian trade, the euro struggled near a 6-1/2-month low against the dollar on Tuesday, as the bounce seen at the start of the week faded and investors took a grim view on the prospect of fresh elections in Italy.

The common currency was little changed at $1.1629 after slipping overnight to $1.1607, its lowest since November 9.

It had spiked to $1.1728 earlier on Monday after Italian President Sergio Mattarella rejected a vocal critic of the single currency as economy minister.

But Mattarella's veto angered the anti-establishment parties which had been trying to forge an alliance, prompting them to abandon their coalition plans and setting the stage for fresh elections.

Financial markets fear that the elections, which could take place as early as August, are seen as a quasi-referendum over Italy's role in the European Union and euro zone and could end up strengthening eurosceptic parties even further.

The dollar was trading against the Indian rupee at Rs 67.695 and the US currency was available at 6.412 in term of the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Tuesday. 83.70-83.70 (Previous 83.70-83.70.

In the third Asian trade, the euro was buried near multi-month lows against major rivals on Wednesday as Italy's political crisis deepened, raising the likelihood of an early election that some market players fear could lead to a eurosceptic government in Rome.

Sources close to some of Italy's main parties said there was now a chance that President Sergio Mattarella could dissolve parliament in the coming days and send Italians back to the polls as early as July 29.

The euro, which slipped to a 10-month low of $1.1510, on Tuesday, and last stood at $1.1542, little moved in Asian trade. It has fallen 4.5 percent so far this month.

The euro dropped 1.0 percent against the safe-haven Swiss franc on Tuesday, its biggest daily fall since September, and last stood at 1.1445 francs. The dollar was available against the Indian rupee at Rs 67.780, the greenback was at 3.993 in terms of the Malaysian ringgit and the US currency was at 6.426 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Wednesday. 83.70-83.70 (Previous 83.70-83.70).

In the third Asian trade, the euro won a reprieve on Thursday, holding on to the strong gains it made on Wednesday, as Italian leaders moved to mitigate political turbulence and avoid a potentially disruptive early election.

Italian Prime Minister-designate Carlo Cottarelli said on Wednesday that possibilities had emerged "for the birth of a political government," suggesting politicians, rather than technocrats like himself, might be able to steer the country out of deadlock.

That has eased fears that fresh Italian elections could strengthen the hand of anti-establishment parties, helping to bring down Italian bond yields after they spiked sharply on Tuesday.

The euro traded little changed at $1.1654, having risen 1.1 percent the previous day, its second-biggest daily gain so far this year. It had hit a 10-month low of $1.1510 on Tuesday.

The dollar was trading against the Indian rupee at Rs 67.460, the greenback was at 3.975 in terms of the Malaysian ringgit and the US currency was available at 6.407 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Thursday. 83.70-83.70 (Previous 83.70-83.70). In the fourth Asian trade, the euro won a reprieve on Thursday, holding on to the strong gains it made on Wednesday, as Italian leaders moved to mitigate political turbulence and avoid a potentially disruptive early election.

Italian Prime Minister-designate Carlo Cottarelli said on Wednesday that possibilities had emerged "for the birth of a political government," suggesting politicians, rather than technocrats like himself, might be able to steer the country out of deadlock.

That has eased fears that fresh Italian elections could strengthen the hand of anti-establishment parties, helping to bring down Italian bond yields after they spiked sharply on Tuesday.

The euro traded little changed at $1.1654, having risen 1.1 percent the previous day, its second-biggest daily gain so far this year. It had hit a 10-month low of $1.1510 on Tuesday.

The dollar was trading against the Indian rupee at Rs 67.460, the greenback was at 3.975 in terms of the Malaysian ringgit and the US currency was available at 6.407 versus the Chinese yuan.

Inter bank buy/sell rates for the taka against the dollar on Thursday. 83.70-83.70 (Previous 83.70-83.70).

In the final Asian trade, the euro seemed set to post its first weekly gain in seven weeks on Friday as worries over Italy's political crisis eased, but the Canadian dollar and Mexican peso were looking frail after Washington went ahead with stiff tariffs on imported steel. The euro traded at $1.1692, little changed on the day but keeping intact its recovery from Tuesday's 10-month low of $1.1510.

So far this week it is up 0.4 percent after six straight falling weeks, hit by signs of slowdown in the euro zone economy and political instability in Italy and Spain.

But Italy's borrowing costs fell sharply for the last two days as the country's efforts to form a coalition government are back on track.

The two anti-establishment parties agreed on their pick for pivotal economy ministry after their initial, euro-sceptic candidate had been rejected by the head of state.

The dollar was available against the Indian rupee at Rs 67.255, the greenback was at 3.982 in terms of the Malaysian ringgit and the US currency was at 6.417 in relation to the Chinese yuan.

In the final US trade, better-than-expected US employment data on Friday kept the dollar afloat, even as the European Union, Canada and Mexico are expected to retaliate to the import tariffs on steel and aluminum announced by President Donald Trump. Against a basket of six currencies, the dollar rose half a percent to a session high of 94.45. The move, however, was relatively muted compared to the blockbuster jobs numbers.

The euro edged higher on Friday, breaking a six-week losing streak, supported by a drop in Italian bond yields after a revived coalition deal between two anti-establishment parties pulled the country back from snap elections.

Copyright Business Recorder, 2018


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