Wednesday, April 24th, 2024
Home »Top Stories » THE RUPEE: marginal slide
The rupee dropped modestly against the dollar on the money market during the week, ended on January 5, 2019. the rupee was down by eight paisas in relation to the dollar for buying at Rs 138.93 and it also shed five paisas for selling and Rs 138.95.

INTER-BANK MARKET: OPEN MARKET RATES: The rupee also depreciated in terms of the dollar for buying and selling at Rs 138.80 and Rs 139.20. The rupee, however, recovered 75 paisas versus the euro for buying and selling at Rs 157.25 and Rs 159.05.

Commenting on the rupee's performance last week, marketmen said that the rupee fell slightly against the dollar due to rising demand for greenback. The short supply phenomenon of the greenback prevailed throughout the week which helped its appreciation and it appears that dollar may go up in the coming week, money experts said.

In the meantime reports showing that country's reserves held by the State Bank of Pakistan (SBP), decreased by 170 million dollars to 7.288 billion dollars.

INTER-BANK MARKET: On Dec 31st, the rupee picked up seven paisas in relation to the dollar for buying at Rs 138.85 and it also rose by four paisas for selling at Rs 138.90. On 1st January, no rates issued as the banks were closed. On 2nd, the rupee slipped slightly in relation to the dollar for buying and selling at Rs 138.89 and Rs 138.91.

On Jan 3rd, the rupee shed two paisas in relation to the dollar for buying and selling at Rs 138.91 and Rs 138.93. On Dec 4, the rupee shed two paisas more in relation to the dollar for buying and selling at Rs 138.93 and Rs 138.95.

OPEN MARKET RATES: On Monday, the rupee appreciated by 20 paisas in terms of the dollar for buying and selling at Rs 138.50 and Rs 139.00, they said. The rupee however, lost 50 paisas versus the euro for buying and selling at Rs 158.00 and Rs 159.80, they said.

On Tuesday, the rupee was unchanged in terms of the dollar for buying and selling at Rs 138.50 and Rs 139.00 respectively, they said. The rupee was trading versus the euro at the overnight levels for buying and selling at Rs 158.00 and Rs 159.80 respectively, they said.

On Wednesday, the rupee depreciated by 30 paisas in terms of the dollar for buying at Rs 138.80 and it also shed 20 paisas for selling Rs 139.20, they said. The rupee held the overnight levels versus the euro for buying and selling at Rs 158.00 and Rs 159.80, they said.

On Thursday, the rupee was almost unchanged in terms of the dollar for buying and selling at Rs 138.80 and Rs 139.20. The rupee gained sharply versus the euro for buying and selling at Rs 156.80 and Rs 158.60. On Friday, the rupee did not move any side in terms of the dollar for buying and selling at Rs 138.80 and Rs 139.20. The rupee failed to maintain firmness versus the euro for buying and selling at Rs 157.60 and Rs 159.40.

On Saturday, the rupee was unchanged in terms of the dollar for buying and selling at Rs 138.80 and Rs 139.20. The rupee, however, recovered 35 paisas versus the euro for buying and selling at Rs 157.25 and Rs 159.05.

OVERSEAS OUTLOOK FOR DOLLAR: In first Asian trade, the dollar traded narrowly against its peers on Monday, as risk sentiment remained fragile over heightened concerns of slowing global growth and a partial US government shutdown.

Markets will be closely watching the progress of trade talks between Washington and Beijing in the New Year. In a tweet which would come as a sigh of relief to the markets, US President Donald Trump said on Sunday that he had a "long and very good call" with his Chinese counterpart Xi Jinping and that a possible trade deal between the United States and China was progressing well.

The Australian dollar gained 0.1 percent to $0.7049. The fortunes of the Australian economy are closely tied to China, its largest trading partner. Trade concerns have hurt China's economy this year and analysts expect its manufacturing sector to have contracted for the first time in more than two years. Chinese PMI data is scheduled to be released later on Monday.

The dollar index, a gauge of its value versus six major peers was marginally lower, fetching 96.35 in early Asian trade.

The dollar was trading against the Indian rupee at Rs 69.840 and the greenback was available at 4.136 in terms of the Malaysian ringgit.

On the second Asian trade, there is no Asia emerging markets currencies report on Tuesday, Jan 1, as most Asian currency markets remained closed for a New Year holiday.

In third Asian trade, safe-haven currencies such as the yen rose against the dollar on Wednesday, as a cautious mood prevailed on the first trading day of the year on concerns over global growth, the US government shutdown and a slower pace of Federal Reserve rate hikes.

The yen gained 0.3 percent against the dollar to 109.39 in Asian trade. Trading volumes remained light as global markets reopened after the New Year's Day holiday. Japanese markets remain closed on Wednesday. The yen has strengthened for three straight weeks on investors' lower appetite for risk.

Fears of a global slowdown were aggravated on Wednesday by a survey showing China's factory activity contracted for the first time in 19 months in December as domestic and export orders continued to weaken.

The dollar was trading against the Indian rupee at Rs 69.663, the greenback was at 4.135 in terms of the Malaysian ringgit and the US currency was at 6.856 versus the Chinese yuan.

In fourth Asian trade, the Japanese yen soared on Thursday as the break of key technical levels triggered massive stop-loss sales of the US and Australian dollars in very thin markets.

The dollar collapsed to as low as 105.25 yen on Reuters dealing, a drop of 3.2 percent from the opening 108.76 and the lowest reading since March 2018. It was last trading around 107.50 yen.

The dollar was trading against the Indian rupee at Rs 70.410, the US currency was available versus the Malaysian ringgit at 4.140 and the greenback was 6.875 in terms of the Chinese yuan.

In final Asian trade, the safe-haven yen strengthened marginally versus the dollar on Friday as broader market sentiment remained weak on rising concerns over a sharp slowdown in global growth.

Weaker-than-expected US factory activity and fears of a slowdown in China from a bruising trade war have heightened investor expectations the Federal Reserve will not raise rates in 2019, and possibly even cut them in 2020.

Global equities have had a weak start to the New Year and US bond yields have fallen sharply on rising bets economic activity could brake sharply across the world this year.

The dollar index was marginally lower at 96.3. The index fell 0.56 percent in the previous session. The euro and sterling were unchanged from Thursday's close at $1.1391 and $1.2627, respectively.

The dollar was trading against the Indian rupee at Rs 69.925, the greenback was at 4.139 versus the Malaysian ringgit and the US currency was available at 6.863 in terms of the Chinese yuan.

In final US trade, the US dollar retreated against the euro on Friday, giving up all the gains logged after a robust US jobs report, following comments from Federal Reserve Chairman Jerome Powell that the US central bank will be sensitive to the downside risks the market is pricing in. The euro was 0.09 percent higher at $1.1401 against the greenback. Earlier in the day, the euro zone single currency fell as low as $1.1347 against the dollar after the dollar rose following data that showed US employers hired the most workers in 10 months in December while boosting wages.

Copyright Business Recorder, 2019


the author

Top
Close
Close