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An easier trend was witnessed on the money market as the rupee showed slight fall in relation to the dollar during the week, ended on August 18, 2018.

INTER-BANK MARKET RATES: The rupee was lower by seven paisas in relation to the US currency for buying and selling at Rs 124.00 and Rs 124.05, they added.

OPEN MARKET RATES: The rupee was almost unch-anged against the dollar for buying and selling at Rs 121.50 and Rs 122.50. The rupee showed no change versus the euro for buying at Rs 135.50 while it shed 50 paisas for selling Rs 140.50.

Slight changes were seen on the money market during the last week as the rupee managed to shed losses due to easy supply of dollar, dealers said.

Some marketmen said that the rupee may not fluctuate sharply in the coming days. If supply of dollars improve, it is most likely that the national currency likely to expand winning ground, they expect.

INTER-BANK MARKET RATES: On Monday, the rupee shed three paisas in relation to the US currency for buying at Rs 123.93 and it also dropped by five paisas for selling at Rs 123.97. On Wednesday, the rupee gained around 23 paisas in relation to the US currency for buying and selling at Rs 123.70 and Rs 123.73.

On Thursday, the rupee picked up around 23 paisas in relation to the US currency for buying and selling at Rs 123.50 and Rs 123.55, they added. On Friday, the rupee lost 50 paisas in relation to the US currency for buying and selling at Rs 124.00 and Rs 124.05, they added.

OPEN MARKET RATES: On August 13, the rupee did not move any side against the dollar for buying selling at Rs 121.50 and Rs 122.50, they said. The rupee gained 50 paisa against the euro for buying at Rs 135.50, while, it, stayed put for selling at Rs 141.00.

On August 15, the rupee rose by 20 paisas against the dollar for buying at Rs 121.30 while it did not move any side for selling at Rs 122.50. The rupee picked up Re one versus the euro for buying and selling at Rs 134.50 and Rs 140.00.

On August 16, the rupee gained 30 paisas against the dollar for buying at Rs 121.00 while rose by 20 paisas for selling at Rs 122.30. The rupee did not move any side versus the euro for buying and selling at Rs 133.50 and Rs 139.80.

On August 17, the rupee also shed 50 paisas against the dollar for buying at Rs 121.50 while it slipped by 20 paisas for selling at Rs 122.50. The rupee dropped Rs 1.50 versus the euro for buying at Rs 135.00 and it shed 20 for selling Rs 140.00.

On August 18, the rupee did not move any side against the dollar for buying and selling at Rs 121.50 and Rs 122.50. The rupee lost 50 paisas versus the euro for buying and selling at Rs 135.50 and Rs 140.50.

OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the euro was on the defensive on Monday after touching a 13-month low against the dollar as investors bid up safe havens such as the US dollar and the yen on worries about the exposure of European banks to crisis-hit Turkey.

After hitting a record low of 7.24 against the dollar early on Monday, Turkey's lira found some support after Finance Minister Berat Albayrak said the government has drafted an economic action plan to ease investor concerns and the banking watchdog said it limited swap transactions.

The South African rand and Mexican peso were also weak against the US dollar on Monday as the lira crisis unsettled other emerging market currencies.

The euro has been hit hard after the Financial Times reported on Friday, citing two sources, that the European Central Bank had concerns about banks in Spain, Italy and France and their exposure to Turkey.

The dollar was trading against the Indian rupee at Rs 69.455, the US currency was available versus the Malaysian ringgit at 4.090 and the greenback was at 6.875 in terms of the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Monday: 83.75-83.75 (Previous 83.75-83.75).

In the second Asian trade, the euro stood near a one-year low against the dollar and the Swiss franc on Tuesday, remaining under pressure as the Turkish lira wobbled on worries that Turkey's economic woes could hit European banks and spread to other emerging economies.

The lira has fallen almost 30 percent so far this month on concerns about President Tayyip Erdogan's reluctance to raise interest rates despite rising inflation and a deepening diplomatic rift with the United States.

"The Turkish lira remains volatile and it is too early to say the lira has settled down. For now, currencies will be driven by the Turkish lira," said Yukio Ishizuki, senior strategist at Daiwa Securities.

The dollar was trading against the Indian rupee at Rs 69.970, the greenback was at 69.93 in terms of the Malaysian ringgit and the US currency was at 6.888 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Tuesday: 83.75-83.75 (Previous 83.75-83.75).

In the third Asian trade, the dollar hit another fresh 13-month high against a basket of major currencies on Wednesday as safe-haven demand rooted in fears over fallout from the Turkish lira's recent drop boosted the US currency.

The greenback's strength - overnight it also hit a 13-month high - has been bolstered by a fall for the euro, dogged by concerns over exposure of European banks to Turkey.

On Wednesday, an index that tracks the dollar against the euro, yen and four other currencies was flat at 96.729, hovering near a 13-month high of 96.794 reached the previous day.

The Turkish lira stabilised after rebounding more than 8 percent overnight. The currency traded 0.82 percent weaker on the day at 6.41 to the dollar after plunging to an all-time low of 7.24 on Monday. The dollar was trading against the Malaysian ringgit at 4.101 and the greenback was at 6.906 in terms of the Chinese yuan.

In the fourth Asian trade, the dollar was nudged away from a 13-month peak on Thursday as risk aversion eased and emerging market currencies bounced back on news that a Chinese delegation will travel to the United States late in August to hold trade talks.

China's Ministry of Commerce said on Thursday that it had received an invitation from the United States for talks to be held with US Under Secretary of Treasury for International Affairs David Malpass.

The news that the world's two biggest economic powers currently locked in a trade war were showing a willingness to negotiate boosted investor sentiment after a worrying week.

The dollar index against a basket of six major currencies was 0.17 percent lower at 96.536. It pulled back from a 13-month high of 96.984 scaled the previous day when currency turmoil in Turkey and concerns about China's economic health supported safe-haven assets and weighed on emerging market currencies.

The dollar was available against the Indian rupee at Rs 70.195, the greenback was at 4.097 in terms of the Malaysian ringgit and the US currency was trading at 6.885 in terms of the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Thursday: 83.75-83.75 (Previous 83.75-83.75).

In the final Asian trade, the dollar stepped back from 13-1/2-month highs against other major currencies on Friday as talks next week between China and the United States offered some hope that the world's two largest economies will find a way to head off a full-blown trade war.

The dollar index, a measure of the greenback's strength against a basket of six major peers, was 0.1 percent lower at 96.549.

It had climbed to 96.984, its highest since late June 2017 on Wednesday during a week in which a plunge by the Turkish lira and concerns over China's economic health hit emerging market currencies, driving up demand for the safe-haven greenback.

The dollar lost steam, however, after China and the United States agreed on Thursday to hold a new round of trade talks on August 21-22, helping stem risk aversion in the broader markets.

The euro, which had also been hit by fears of a spill over from Turkey's financial crisis, was among the currencies to benefit from the news of trade talks.

The dollar was trading against the Malaysian ringgit at 4.102 and the greenback was available at 6.893 in terms of the Chinese yuan.

In the final US trade, the dollar fell against a basket of peers on Friday, retreating from a 13-month high hit earlier this week, on lower demand for the safe-haven greenback and some profit-taking, as worries about trade tensions between Washington and Beijing eased.

The dollar index, which measures the greenback against a basket of six other currencies, was down 0.56 percent at 96.107, on pace for its worst daily decline in nearly a month.

Escalating tensions on trade between the United States and some of its largest trading partners had driven traders to sell emerging market currencies and take to the safety of the US currency. Next week's lower-level trade talks between China and the United States offer some hope of easing some of those tensions.

Copyright Business Recorder, 2018


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