THE RUPEE: marginal fall

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SOURCEBusiness Recorder
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The rupee fluctuated modestly in relation to the dollar during the week, ended on April 13, 2019. The rupee managed to hold present levels in terms of the dollar for buying and selling at Rs 141.39 and Rs 141.40.

INTER-BANK MARKET RATES: OPEN MARKET RATES: The rupee picked up 50 paisas in relation to the dollar for buying at Rs 142.00 and it rose by 30 paisas for selling and Rs 142.50. The rupee also picked up 40 paisas versus the euro for buying and selling at Rs 159.80 and Rs 161.50.

Commenting on the rupee’s movement, marketmen said that the rupee moved cautiously versus the dollar despite increasing demand for the greenback.

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Payment requirements and buying of dollars, caused slight fall in the value of the rupee, so it looks that the rupee will move within range in terms of the dollar, they said. According to the State Bank of Pakistan (SBP) country’s foreign exchange reserves declined during the last week.

INTER-BANK MARKET RATES: On Monday, the rupee shed eight paisas in terms of the dollar for buying and selling at Rs 141.39 and Rs 141.40. On Tuesday, the rupee inched up by two paisas in terms of the dollar for buying and selling at Rs 141.37 and Rs 141.38. On Wednesday, the rupee moved slightly in terms of the dollar for buying and selling at Rs 141.37 and Rs 141.39. On Thursday, the rupee was available versus the greenback at Rs 141.35 and Rs 141.38. On Friday, the rupee shed two paisas in terms of the dollar for buying and selling at Rs 141.39 and Rs 141.40.

OPEN MARKET RATES: On April 8, the rupee dropped by 20 paisas in relation to the dollar for buying at Rs 142.50 while, it did not show any change for selling Rs 142.80. The rupee gained 60 paisas versus the euro for buying and selling at Rs 159.40 and Rs 161.20, they said.

On April 9, the rupee picked up 20 paisas in relation to the dollar for buying at Rs 142.30 while, it gained 10 paisas for selling Rs 142.70, they said. The rupee shed slightly versus the euro for buying and selling at Rs 159.50 and Rs 161.30, they said. On April 10, the rupee picked up 30 paisas in relation to the dollar for buying at Rs 142.00 while, it gained 20 paisas for selling Rs 142.50. The rupee gained 20 paisas versus the euro for buying and selling at Rs 159.30 and Rs 161.10.

Also Read: Rupee weakness behind high inflation

On April 11, the rupee sustained present levels against the dollar for buying and selling at Rs 142.00 and Rs 142.50, they said. The rupee also did not show any variation in terms of the euro for buying and selling at Rs 159.30 and Rs 161.30. On April 12, the rupee did not move any side in relation to the dollar for buying and selling at Rs 142.00 and Rs 142.50. The rupee fell versus the euro for buying and selling at Rs 160.30 and Rs 162.10.

On April 13, the rupee was unchanged in relation to the dollar for buying and selling at Rs 142.00 and Rs 142.50. The rupee gained 50 paisas versus the euro for buying and selling at Rs 159.80 and Rs 161.50.

OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the dollar sagged on Monday as bond yields extended their decline after a US jobs report showed wage growth lose momentum even as employment increased.

The closely watched data released on Friday showed non-farm payrolls rose by a solid 196,000 in March, topping expectations and giving riskier assets a much-needed lift. However, other components of the US employment report suggested the economy wasn’t firing on all cylinders.

Wage gains slowed in March, with average hourly earnings rising a modest 0.1 percent after jumping 0.4 percent in February. Treasury yields slipped and weighed on the dollar as the moderation in wage growth supported the Federal Reserve’s decision to suspend further interest rate increases this year.

The dollar index against a basket of six major currencies inched down 0.15 percent to 97.253, retracing Friday’s modest gains.

The dollar was trading against the Indian rupee at Rs 69.520, the greenback was at 4.098 in terms of the Malaysian ringgit and the US currency was available at 6.720 versus the Chinese yuan.

In the second Asian trade, the dollar was shackled on Tuesday by a combination of weak US economic data and gains for commodity-linked currencies such as the Canadian and Australian dollars which drew support from an extended surge in crude oil prices. The dollar index against a basket of six major currencies inched down 0.05 percent to 97.001 after losing 0.35 percent the previous day, marking its biggest daily decline since March 20.

On top of the pressure from buoyant commodity-linked currencies, the dollar was weighed by data showing US durable goods orders declined in February and a bounce in the euro as investors squared positions ahead of a looming European Central Bank meeting.

The dollar was trading against the Indian rupee at Rs 69.480, the greenback was at 4.094 in terms of the Malaysian ringgit and the US currency was available at 6.714 versus the Chinese yuan.

In the third Asian trade, the safe-haven yen remained in demand on Wednesday as investor caution prevailed due to fresh US-Europe trade tensions and the International Monetary Fund’s downgrade of its global economic outlook.

Most major currencies were locked in narrow trading ranges as market participants largely kept to the sidelines ahead of a crucial Brexit summit meeting and a rate decision by the European Central Bank later in the day.

Broader sentiment in the market remained subdued as the flare-up between the United States and Europe added to other potential global flashpoints over trade, including Sino-US negotiations.

The dollar was trading against the Indian rupee at Rs 69.193, the greenback was at 4.095 versus the Malaysian ringgit and the US currency was at 6.715 in relation to the Chinese yuan.

In the final Asian trade, the euro rose to a 2-1/2-week high on Friday, as dealers said speculators anticipated increased demand for the common currency arising from a Japanese bank’s plans to purchase the multi-billion dollar aviation finance business from a German bank.

The euro rose 0.35 percent to $1.1289 after touching $1.1294, its highest since March 26. The common currency also advanced about 0.4 percent to 126.23 yen, its strongest since March 21.

Dealers said speculators were buying the euro in response to reports on Mitsubishi UFJ Financial Group’s planned purchase of the aviation financing business of Germany’s DZ Bank. As of June last year, that business stood at 5.6 billion euros.

Pressured by the stronger euro, the dollar index against a basket of six major currencies was down 0.2 percent at 96.991, giving up most of the previous day’s gains.

The dollar was trading against the Indian rupee at Rs 69.110, the greenback was at 4.118 in terms of the Malaysian ringgit and the US currency was available at 6.720 in relation to the Chinese yuan.

In the fourth Asian trade, the dollar hovered near two-week lows on Thursday as Federal Reserve minutes reinforced its recent dovish policy tilt while the pound held steady after European leaders extended the deadline for Britain to leave the union.

Currency markets are also awaiting key economic data from the world’s second-largest economy with March Chinese trade figures due on Friday and first quarter gross domestic product due next week.

The dollar was trading against the Indian rupee at Rs 69.110, the greenback was at 4.110 versus the Malaysian ringgit and the US currency was at 6.714 in relation to the Chinese yuan.

In the final US trade, the dollar slipped on Friday to its lowest against the euro in more than two weeks on reports a foreign bank was preparing to fund an acquisition of a European company, while signs of economic stabilization in China and a strong start to US corporate earnings season boosted demand for riskier assets.

The euro was 0.6% higher against the dollar at $1.1317, its highest since March 26. Dealers attributed part of the euro’s strength to anticipated currency demand arising from a Japanese bank’s plans to purchase a German multibillion-dollar aviation finance business.

Speculators were buying the euro in response to reports on Mitsubishi UFJ Financial Group’s planned purchase of the aviation financing business of Germany’s DZ Bank, dealers said. The transaction was announced on March 1 and MUFG said that it was expected to close after June.

(This news/article originally appeared in Business Recorder on April 15th, 2019)

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