THE RUPEE: Mixed trend

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SOURCEBusiness Recorder
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The rupee showed mixed trend against the dollar on the money market during the week, ended on April 20, 2019. The rupee held the 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 dropped by 20 paisas versus the dollar for buying and selling at Rs 142.00 and Rs 142.50, they said. The rupee, however, picked Re 0ne in relation to the euro for buying and selling at Rs 159.00 and Rs 160.75, they said.

Marketmen said that dollar did not react sharply against the rupee as Prime Minister Imran Khan made a sweeping cabinet reshuffle last week after only seven months in power and appointed Abdul Hafeez Shaikh as de facto finance minister to steer the country through worsening economic turmoil.

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Pakistan is on the brink of signing up for it 13th International Monetary Fund (IMF) bailout since the late 1980s in a bid to stave off a balance of payments crisis and ease ballooning current account and fiscal deficits.

According to a report, the International Monetary Fund (IMF) team will travel to Pakistan at the end of this month to continue talks over a support package.

INTER-BANK MARKET RATES: On Monday, the rupee was inert in terms of the dollar for buying and selling at Rs 141.39 and Rs 141.40. On Tuesday, the rupee was unchanged in relation to the dollar for buying and selling at Rs 141.39 and Rs 141.40, they said. On Wednesday, the rupee was unchanged in relation to the dollar for buying and selling at Rs 141.39 and Rs 141.40. On Thursday, the rupee did not budge any side in relation to the dollar for buying and selling at Rs 141.39 and Rs 141.40. On Friday, the rupee held the present levels in terms of the dollar for buying at Rs 159.00 and selling at Rs 141.39 and Rs 141.40.

OPEN MARKET RATES: On April 15, the rupee gained 20 paisas in relation to the dollar for buying and selling at Rs 141.80 and Rs 142.30, they said. The rupee, however, lost 50 paisas versus the euro for buying and selling at Rs 160.30 and Rs 161.80, they said.

On April 16, the rupee maintained it’s recovery, gaining 10 paisas versus the dollar for buying and selling at Rs 141.70 and Rs 142.20, they said. The rupee also picked Re one against the euro for buying and selling at Rs 159.30 and Rs 161.10, they said. On April 17, the rupee picked up 20 paisas versus the dollar for buying and selling at Rs 141.50 and Rs 142.00, they said. The rupee shed 30 paisas against the euro for buying and selling at Rs 159.60 and Rs 161.40.

On April 18, the rupee was unmoved versus the dollar for buying and selling at Rs 141.50 and Rs 142.00, they said. The rupee gained 60 paisas against the euro for buying and selling at Rs 159.00 and Rs 160.60.

Also Read: THE RUPEE: marginal fall

On April 19, the rupee lost 30 paisas versus the dollar for buying and selling at Rs 141.80 and Rs 142.30. The rupee was unchanged against the euro for buying at Rs 159.00 while fell by 20 paisas for selling at Rs 160.60.

In the first Asian trade, the yen hovered near its lowest level this year on Monday as more signs of stabilisation in the Chinese economy and an upbeat start to the US earnings season prompted investors to abandon the safe-haven currency to seek higher returns elsewhere.

Although China’s imports remained weak, the data on the whole cemented hopes that the Chinese economy is bottoming out after a soft patch as Beijing has curbed de-leveraging efforts and stepped up support for the economy in recent months.

The dollar was trading against the India rupee at Rs 69.290, the greenback was at 4.110 in terms of the Malaysian ringgit and the US currency was available at 6.710 in relation to the Chinese Yuan. In the second Asian trade, the dollar edged up against a basket of its key rivals on Tuesday with investors erring on the side of caution as they looked for more concrete signs of stabilisation in the global economy.

With most currencies staying within well-trodden trading ranges ahead of European and Chinese data, the Australian dollar was the surprise loser in Asia after Australia’s central bank left the door ajar for a possible cut in interest rates.

The dollar index was last a shade higher at 96.980 after ending the previous session basically unchanged. Markets are now focused on European and Chinese data for more evidence that the worst may be over for the global economy.

The dollar was trading against the Indian rupee at Rs 69.490, the greenback was at 4.113 in relation to the Malaysian ringgit and the US currency was at in terms of the Chinese yuan.

In the third Asian trade, the Australian dollar shot to a two-month peak on Wednesday after data showed steady Chinese economic growth in the first quarter, helping Australia’s currency shake off earlier losses.

The Aussie was 0.2 percent higher at $0.7190 after touching $0.7206, its strongest since Feb. 21. It also reached a four-month peak of The US dollar, often a safe haven, sagged against the euro after the Chinese data eased concerns about a global economic slowdown.

The dollar index against a basket of six major currencies dipped 0.1 percent to 96.976. The euro rose 0.2 percent to $1.1300, paring the previous day’s losses. The dollar was trading against the Malaysian ringgit at 4.143 and the US currency was at 6.699 versus the Chinese yuan.

In the fourth Asian trade, the euro was buoyant on Thursday after more evidence of strength in China improved the outlook for the global economy, with the market looking next to European indicators to provide the currency with a further boost.

The euro was a shade higher at $1.1298, having eked out a gain of 0.1 percent the previous day. The single currency has steadily recovered from a recent low of $1.1183 plumbed at the start of April.

The euro was lifted after data on Wednesday showed China’s economy grew at a steady 6.4 percent pace in the first quarter, defying expectations for a further slowdown, as industrial production surged and consumer demand showed signs of improvement.

The dollar index against a basket of six major currencies was flat at 97.015 after dipping 0.05 percent the previous day. The US currency was steady at 112.035 yen after briefly touching a four-month peak of 112.17 on Wednesday amid a bounce in US Treasury yields to a one-month high.

The dollar was trading against the Indian rupee at Rs 69.405, the greenback was at 4.142 versus the Malaysian ringgit and the US currency was available at 6.692 in relation to the Chinese yuan.

In the final Asian trade, the dollar steadied against a basket of currencies on Friday after hitting a 2-1/2-week high overnight as data pointed to a sturdy US economy, while the euro was dented by weak manufacturing activity in Europe.

Many financial markets were closed for the Good Friday Easter holiday. Currency markets remain open but volume is expected to be light. The dollar index, which measures the greenback against a basket of six other major currencies, rose to as high as 97.485 overnight, its highest level since April 2. It last traded at 97.392 on Friday, down 0.1 percent on the day.

US retail sales increased by the most in 1-1/2-years in March as households boosted purchases of motor vehicles and a range of other goods, the latest indication that economic growth picked up in the first quarter after a false start. In the final US trade, the commercial centres were closed due to Good Friday.

(This news/article originally appeared in Business Recorder on April 22nd, 2019)

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