THE RUPEE: improvement against $

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The rupee improved against the dollar on easy supply of the US currency on the money market during the week, ended on 01, June 2019. Commenting on sharp recovery in the value of the rupee, marketmen said that during the month of Ramazan, the rupee recovered some grounds on the back of easy flow of dollar.

Some of them said that the factor behind the appreciation of the rupee is increase in the remittances by the overseas Pakistanis, showing 10 percent higher against the last year. Other currency experts said that the rupee’s gain may prove short-lived in relation to the dollar after the Eid-ul-Fitr holiday.

INTER-BANK MARKET RATES: The rupee gained Rs 1.60 against the dollar for buying and selling at Rs 147.85 and Rs 148.15.

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OPEN MARKET RATES: The rupee recovered 50 paisas in relation to the dollar for buying and selling at Rs 148.00 and Rs 149.00. The rupee was available against the euro for buying and selling at Rs 163.00 and Rs 167.00.

INTER-BANK MARKET RATES: On Monday, the rupee gained against the dollar for buying and selling at Rs 149.70 and Rs 149.80, they said.

On Tuesday, the rupee picked up 30 paisas versus the dollar for buying and selling at Rs 150.40 and Rs 150.50 respectively, they said. On Wednesday, the rupee shed 10 paisas against the dollar for buying and selling at Rs 149.50 and Rs 149.70, they said.

Also Read: THE RUPEE: dollar falls

On Thursday, the rupee gained about Rs 1.30 versus the dollar for buying and selling at Rs 148.45 and Rs 148.55. On Friday, the rupee was available against the dollar at Rs 147.85 and Rs 148.15.

OPEN MARKET RATES: On May 27, the rupee picked up Rs 1.50 versus the dollar for buying and selling at Rs 148.50 and Rs 149.50, they said. The rupee was almost unchanged against the euro for buying and selling at Rs 164.00 and Rs 167.80, they said.

On May 28, the rupee followed same pattern in terms of the dollar for buying and selling at Rs 149.00 and Rs 150.00 respectively, they said. The rupee was almost unchanged against the euro for buying and selling at Rs 164.00 and Rs 168.30 respectively, they said.

On May 29, the rupee did not move any side in relation to the dollar for buying and selling at Rs 149.00 and Rs 150.00 respectively, they said. The rupee was available versus the euro for buying and selling at Rs 164.50 and Rs 168.00.

On May 30, the rupee also picked up Re one in terms of the dollar for buying and selling at Rs 148.00 and Rs 149.00, they said. The rupee also rose sharply against the euro for buying and selling at Rs 162.50 and Rs 166.50, they said.

On May 31, the rupee was up in relation to the dollar for buying and selling at Rs 147.50 and Rs 148.50. The rupee was available versus the euro for buying and selling at Rs 162.50 and Rs 167.00.

On June 1st, the rupee failed to maintain it’s value in terms of the dollar, losing 50 paisas for buying and selling at Rs 148.00 and Rs 149.00. The rupee was available against the euro for buying and selling at Rs 163.00 and Rs 167.00.

OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the euro held firm on Monday trade after pro-European Union parties withstood more fragmentation than before to hold on to two-thirds of seats in the EU parliament elections, limiting gains in nationalist opponents.

The common currency traded at $1.1211 in Asian trade, near its highest levels in 1 1/2 weeks, and off a two-year low of $1.11055 touched on Thursday.

While centre-right and centre-left blocs are losing their shared majority, surges in the Greens and liberals meant parties committed to strengthening the union held on to two-thirds of seats, official projections showed.

The dollar was available against the Indian rupee at Rs 69.500, the greenback was at 4.185 in terms of the Malaysian ringgit and the US currency was at 6.893 versus the Chinese yuan.

In the second Asian trade, the dollar rose against its major peers on Tuesday as investors awaited new trading catalysts after the European Union parliamentary elections showed a polarisation of the 28-member block.

The euro struggled following remarks by two officials from the currency bloc that the European Commission is likely to start disciplinary steps against Italy on June 5 over the country’s rising debt and structural deficit levels, which break European Union rules.

Against a basket of six peers, the dollar gained 0.2% to 97.804, trading about 0.6% off a two-year high of 98.371 hit on Thursday. The index is still up 1.7% for the year.

The dollar was trading against the Indian rupee at Rs 69.643, the greenback was at 4.189 in terms of the Malaysian ringgit and US currency was available at 6.906 in relation to the Chinese yuan. In the third Asian trade, fears of a further escalation in the Sino-US trade dispute kept the dollar steady on Wednesday, holding gains made overnight after investors scooped up safe-haven assets, including US Treasuries.

The dollar was trading against the Indian rupee at Rs 69.790, the greenback was at 4.194 in terms of the Malaysian ringgit and US currency was available at 6.913 in relation to the Chinese yuan. In the fourth Asian trade, the dollar held up against its key rivals on Thursday after fears of an escalation in the Sino-US trade standoff forced investors to take shelter in safe-haven assets, including government bonds.

As the dispute between the world’s two biggest economies showed no signs of abating, worries that global growth will be hurt have rippled through financial markets in recent sessions, with riskier assets in particular taking the brunt of selling.

The dollar held mostly steady even after benchmark 10-year US Treasury yields hit as low as 2.210% overnight, their lowest since the middle of September 2017.

The dollar was trading against the Indian rupee at Rs 69.785, the greenback was at 4.195 versus the Malaysian ringgit and the US currency was available at 6.911 in terms of the Chinese yuan.

In the final Asian trade, the dollar was trading against the Indian rupee at Rs 69.790, the greenback was at 4.193 in terms of the Malaysian ringgit and the US currency was at 6.907 versus the Chinese yuan.

The Mexican peso sank to three-month lows against the dollar early on Friday after Washington unexpectedly said it will slap tariffs on all goods coming from its southern neighbour.

The safe-haven yen advanced as the Trump administration’s move to escalate its trade war with other countries further shook already fragile risk sentiment in global financial markets.

The dollar index against a basket of six major currencies was flat at 98.147 after inching down the previous day, when it snapped two straight sessions of gains amid a continuing decline in US yields.

The index was still headed for a 0.5% gain this week, supported by weakness in peers such as the euro and sterling, and the US currency’s own status as a safe-haven in times of market and economic troubles.

In the final US trade, Investors rushed into the perceived safety of the Japanese yen on Friday, with the currency scoring its best day against the dollar in four months, after US President Donald Trump’s threat to impose tariffs on Mexico roiled financial markets and stoked recession fears.

Taking aim at what he said was a surge of illegal immigrants across the southern border, Trump vowed on Thursday to impose a tariff on all goods coming from Mexico, starting at 5% and ratcheting higher until the flow of people ceases.

The Mexican peso tumbled against the greenback, losing as much as 3.4% at one point, for its steepest single-day loss since October. It was down 2.65% at 19.6485 per dollar.

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Trump’s surprise duties on Mexican imports “spurred sharp losses in the Mexican peso and a general risk-off move that strengthened the yen,” said Marc Chandler, chief market strategist at Bannockburn Global Forex LLC.

Several different currencies have served as safe havens during the global trade conflict, but the yen has consistently been among the strongest this year, and on Friday investors appeared to opt for the Japanese currency.

(This news/article originally appeared in Business Recorder on June 3rd, 2019)

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