THE RUPEE: firmer trend

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SOURCEBusiness Recorder
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The rupee managed to hold present levels against the dollar during the week, ended on April 27, 2019. INTER-BANK MARKET RATES: The rupee did not show any variation in terms of the dollar for buying and selling at Rs 141.39 and Rs 141.40.

OPEN MARKET RATES: The rupee was almost unchanged versus the dollar for buying and selling at Rs 141.70 and Rs 142.20, they said. The rupee was also unchanged in relation to the euro for buying and selling at Rs 157.50 and Rs 159.30, they said.

INTER-BANK MARKET RATES: The rupee almost traded versus the dollar for buying and selling at Rs 141.39 and Rs 141.40, they said.

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Commenting on the performance of the rupee, marketmen said that as a result of easy flow of the greenback, the rupee did not move sharply in terms of the greenback.

In fact, it looks that the rupee is recovering against the dollar but slowly, so we expect the national currency to go up in the near future, they added.

In the meantime, country’s foreign exchange reserves stood at 9.024 billion dollar.

OPEN MARKET RATES: On April 22, the rupee recovered week-end losses, picking up 20 paisas versus the dollar for buying and selling at Rs 141.80 and Rs 142.30, they said. The rupee was nearly unchanged against the euro for buying at Rs 159.00 while it shed five paisas for selling at Rs 160.80. On April 23, the rupee picked up more 10 paisas against the dollar for buying and selling at Rs 141.70 and Rs 142.20. The rupee was nearly unchanged against the euro for buying at Rs 159.00 while it rose by five paisas for selling at Rs 160.75.

On April 24, the rupee recovered 20 paisas against the dollar for buying and selling at Rs 141.50 and Rs 142.00, they said. The rupee also picked up 50 paisas in relation to the euro for buying and selling at Rs 158.50 and Rs 160.20.

Also Read: THE RUPEE: Modest recovery

On April 25, the rupee shrugged off steady trend, shedding 20 paisas against the dollar for buying and selling at Rs 141.70 and Rs 142.20. The rupee, however, gained about Re one in relation to the euro for buying and selling at Rs 157.50 and Rs 159.30.

On April 26, the rupee held the overnight levels against the dollar for buying and selling at Rs 141.70 and Rs 142.20. The rupee also showed no change in relation to the euro for buying and selling at Rs 157.50 and Rs 159.30.

On April 27, the rupee was almost unchanged versus the dollar for buying and selling at Rs 141.70 and Rs 142.20. The rupee was also unchanged in relation to the euro for buying and selling at Rs 157.50 and Rs 159.30.

OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the dollar drifted higher against the euro and British pound on Monday, supported by the relative strength of the US economy, though moves remained small as many investors were still away for the long Easter weekend.

Financial markets in Australia, Hong Kong and many major countries in Europe are closed on Monday for the Easter holiday. Currency trading continues globally but volume is expected to be light.

The dollar has found support in recent weeks on the back of a gradual rise in US 10-year Treasury yields and signs of strength in the world’s top economy, including better-than-expected retail sales in March, following a weak start to the year.

The dollar index was last down a tenth of a percent at 97.369, drifting slightly lower after booking a 0.4-percent gain last week.

The index remained within striking distance of its 2019 high of 97.71 brushed in early March.

The dollar was trading against the Indian rupee at Rs 69.730, the greenback was at 4.135 in terms of the Malaysian ringgit and the US currency was at 6.713 in terms of the Chinese yuan.

In the second Asian trade, the dollar edged up against a basket of key rivals on Tuesday, while the Canadian dollar was supported by rising crude oil prices due to US plans to tighten a clampdown on Iranian oil exports from next month.

Financial markets in Australia and New Zealand reopened after the long Easter holiday, and were set to reopen across Europe later in the day.

The dollar index against a basket of six key rivals was a shade higher at 97.336, edging toward the 2019 high of 97.71 struck in early March.

The greenback has firmed in recent weeks on the back of higher US 10-year Treasury yields and signs of strength in the US economy following a weak start of the year.

Data released overnight showed US existing home sales fell more than expected in March amid supply constraints, and figures for new home sales will be released later in the global day.

The dollar was available against the Indian rupee at Rs 69.788, the greenback was at 4.126 in terms of the Malaysian ringgit and the US currency was trading at 6.715 versus the Chinese yuan.

In the third Asian trade, the dollar hovered near a 22-month high against its peers on Wednesday, after strong US housing data further eased concerns of a slowdown in the world’s biggest economy.

The dollar index versus a basket of six major currencies stood at 97.602 after rising to 97.777 overnight, its highest since June 2017.

Data showing sales of new US single-family homes jumped to a near 1-1/2-year high in March on Tuesday added to recent positive readings in retail sales and exports.

The euro, which has the largest weighting within the dollar index, was a touch lower at $1.1219 after shedding 0.25 percent the previous day. US first quarter GDP data on Friday could strengthen the case that while the current period of global expansion is in its late stages, the United States is on a firmer footing compared with other leading economies.

The dollar was steady at 111.885 yen after suffering mild losses overnight, weighed by a decline in long-term Treasury yields. The dollar was trading against the Indian rupee at Rs 69.845, the greenback was at 4.131 in terms of the Malaysian ringgit and the US currency was available at 6.723 versus the Chinese yuan.

In the fourth Asian trade, the euro nursed losses against the dollar on Thursday after dipping to a 22-month low on a surprise drop in a leading indicator for economic activity in Germany, amplifying worries of a growth slowdown in Europe’s largest economy.

German business morale deteriorated in April, bucking expectations for a small improvement, a business index by the Munich-based Ifo economic institute showed on Wednesday, as trade tensions weighed on the German economy, leaving domestic demand to support slowing growth.

The greenback rallied to a 23-month high of 98.189 against a basket of key rivals overnight after gaining more than half a percent, largely propelled by the euro’s weakness. The index last traded slightly lower at 98.096.

The dollar was trading against the Indian rupee at Rs 69.993, the greenback was at 4.134 in terms of the Malaysian ringgit and the US currency was available at 6.729 in relation to the Chinese yuan.

In the final Asian trade, the dollar hovered near a two-year high against its peers on Friday, supported by strong US capital goods orders and awaiting first-quarter GDP data which could further reinforce the greenback’s bullish standing.

The dollar index versus a basket of six major currencies stood at 98.128 after advancing to 98.322 on Thursday, its highest since May 2017.

Data on Thursday showed new orders for US-made capital goods increased by the most in eight months in March. That follows other recent US data that show strength in retail sales and exports which have eased concerns of the world’s biggest economy sharply slowing.

The dollar was trading against the Indian rupee at Rs 70.110, the greenback was at 4.131 in terms of the Malaysian ringgit and the US currency was available at 6.734 versus the Chinese yuan.

In the final US trade, the dollar fell against a basket of other currencies on Friday, after an overall strong US first-quarter growth report was overshadowed by soft inflation data. Gross domestic product increased at a 3.2 percent annualized rate in the quarter, the Commerce Department said in its advance GDP report, released on Friday, versus the 2.0 percent estimated by economists polled by Reuters.

The dollar, however, did not enjoy a boost from the report as traders focused on the core personal expenditures consumption price index figure, the Federal Reserve’s preferred inflation gauge, which increased at only a 1.3% rate versus 1.8% in the prior quarter.

(This news/article originally appeared in Business Recorder on April 29th, 2019)

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