Rupee dips versus dollar

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SOURCEBusiness Recorder
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The rupee lost about six percent against the dollar in process of trading activity during the week, ended on June 15, 2019. The rupee dropped around Rs 5.75 versus the dollar for buying at Rs 155.75 and it also lost Rs 6.15 for selling at Rs 156.25, they said.

INTER-BANK MARKET RATES: OPEN MARKET RATES: The rupee dipped in terms of the dollar for buying and selling at Rs 156.00 and Rs 157.00, they said. The rupee also fell in relation to the euro for buying and selling at Rs 171.50 and Rs 174.80, they said.

According to the marketmen, the rupee is likely to face more depreciation against the dollar despite the fact that there is no shortage of dollar. The rupee may hit Rs 170 level in terms of the dollar in near future, they said. Commenting on the dollar’s surge versus the rupee, Malik Bostan said that the government must curtail import of luxurious products to save foreign exchange reserves.

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INTER-BANK MARKET RATES: On Monday, the rupee lost Rs 1.60 versus the dollar for buying and selling at Rs 150.00 and Rs 150.10. On Tuesday, the rupee lost Rs 1.40 versus the dollar for buying and selling at Rs 151.40 and Rs 151.50. On Wednesday, the rupee shed 15 paisas versus the dollar for buying at Rs 151.55 and it also dropped by 10 paisas for selling at Rs 151.60.

On Thursday, the rupee lost Rs 1.25 versus the dollar for buying at Rs 152.80 and it also dropped by Rs 1.40 for selling at Rs 153.00. On Friday, the rupee lost around Rs 4.00 versus the dollar for buying and selling at Rs 155.75 and Rs 156.25.

OPEN MARKET RATES: On June 10, the rupee also lost Rs 1.70 in terms of the dollar for buying and selling at Rs 149.50 and Rs 150.50. The rupee dropped sharply in relation to the euro for buying and selling at Rs 166.50 and Rs 169.50, they said. On June 11, the rupee fell by 30 paisas in terms of the dollar for buying at Rs 151.30 while it did not move any side for selling at Rs 152.00. The rupee was almost unchanged in relation to the euro for buying and selling at Rs 169.50 and Rs 172.20, they said.

On June 12, the rupee also dropped by Rs 1.50 in terms of the dollar for buying and selling at Rs 151.00 and Rs 152.00. The rupee slid sharply in relation to the euro for buying and selling at Rs 169.50 and Rs 172.00.

On June 13, the rupee was down by Rs 1.20 in terms of the dollar for buying at Rs 152.50 and it also shed Rs 1.50 for selling at Rs 153.50. The rupee was available in relation to the euro for buying and selling at Rs 170.00 and Rs 173.20.

On June 14, the rupee dropped about Rs 4.50 in terms of the dollar for buying and selling at Rs 156.00 and Rs 157.50. The rupee was down by Rs 2.20 in relation to the euro for buying and selling at Rs 172.20 and Rs 175.50.

Also Read: THE RUPEE: dollar hits new high

On June 15, the rupee maintained overnight level in terms of the dollar for buying at Rs 156.00 and it managed to gain 50 paisas for selling at Rs 157.00. The rupee picked up 70 paisas in relation to the euro for buying and selling at Rs 171.50 and Rs 174.80.

OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the Mexican peso jumped against the dollar on Monday after the United States and Mexico struck a migration deal late last week to avert a tariff war, providing some much-needed relief to fragile market sentiment.

Over the past year, trade disputes between the United States and its trading partners, including a long-running conflict with China, have slowed global growth and unsettled financial markets. China’s exports unexpectedly returned to growth in May despite higher US tariffs, data showed on Monday, but many suspected the rise was due to firms front-loading shipments to avoid higher US tariffs. Fears of a longer US-China trade war continued to persist.

The Mexican peso rose 2% to 19.2275 pesos per dollar after trading resumed for the first time after Mexico agreed on Friday to expand along the entire border a programme that sends migrants seeking asylum in the United States to Mexico.

US President Donald Trump had threatened to impose 5% import tariffs on all Mexican goods starting on Monday if Mexico did not commit to do more to tighten its borders.

The dollar was trading against the Indian rupee at Rs 69.465, the greenback was at 4.162 in terms of the Malaysian ringgit and the US In the second Asian trade, the yen eased on Tuesday as investors’ risk appetite ticked up after the United States shelved plans to impose tariffs on Mexico, though fresh US trade threats against China tempered overall market sentiment.

Financial markets over the last year have been gripped by fears of escalating trade tensions between the world’s two largest economies, stoking worries over the outlook for global growth. The dollar index, which measures the greenback against a basket of six peers, edged up 0.05% to 96.799, building on a 0.2% gain achieved overnight.

The dollar was trading against the Indian rupee at Rs 69.470, the greenback was at 4.163 in terms of the Malaysian ringgit and the US currency was available at 6.918 versus the Chinese yuan.

In the third Asian trade, the dollar hovered near an 11-week low against its peers on Wednesday, weighed by expectations the US Federal Reserve could cut interest rates some time in the next few months. The dollar index versus a basket of six major currencies was effectively flat at 96.707, trading just above the 96.459 level it hit on Monday, its lowest since late March.

The index has been under pressure following a sharp decline in long-term US Treasury yields, which fell to near two-year lows on Friday after a soft US jobs report raised expectations for an interest rate cut by the Fed.

Investor focus is now on the Fed’s next policy meeting on June 18-19 and what kind of signals the central bank could offer on the direction of monetary policy.

Expectations for a central bank rate cut this year rose last week after a number of Fed officials, including Chairman Jerome Powell, hinted they were open to easing monetary policy.

The dollar was trading against the Indian rupee at Rs 69.400, the greenback was at 4.162 in terms of the Malaysian ringgit and the US currency was available at 6.916 in terms of the Chinese yuan. In the fourth Asian trade, the dollar held its gains early on Thursday after rebounding from 11-week lows, as peers such as the euro, pound and commodity currencies sagged due to troubles of their own.

The dollar index versus a basket of six major currencies was steady at 96.957 after rising more than 0.3% overnight. The index had dropped to 96.459 on Monday, its lowest since late March, following a sharp decline in long-term US Treasury yields, which fell to near two-year lows last week after a soft US jobs report bolstered expectations for an interest rate cut by the Federal Reserve.

The euro took a hit after US President Donald Trump said on Wednesday he was considering sanctions over Russia’s Nord Stream 2 natural gas pipeline project and warned Germany against being dependent on Russia for energy.

The dollar was available against the Indian rupee at Rs 69.350, the greenback was at 4.160 in terms of the Malaysian ringgit and the US currency was at 6.921 in relation to the Chinese yuan.

In the final Asian trade, the dollar trod water on Friday and was set to show a weekly rise as investor focus turned to next week’s Federal Reserve meeting for hints on a possible rate cut in light of rising risks to trade and global growth.

The dollar index against a basket of six rivals was largely unchanged at 97.029, and on track for a half-percent gain this week. The index had touched an 11-week low of 96.459 last Friday. The Federal Open Market Committee’s (FOMC) two-day policy meeting is set to begin on Tuesday. With trade tensions rising, US growth slowing and hiring in May declining, markets have priced in at least two rate cuts by the end of 2019.

The dollar was trading against the Indian rupee at Rs 69.543, the greenback was available in terms of the Malaysian ringgit at 4.167 and the US currency was 6.924 versus the Chinese yuan.

Mixed trend witnessed

In the final US trade, the dollar trod water on Friday and was set to show a weekly rise as investor focus turned to next week’s Federal Reserve meeting for hints on a possible rate cut in light of rising risks to trade and global growth.

The dollar index against a basket of six rivals was largely unchanged at 97.029, and on track for a half-percent gain this week. The index had touched an 11-week low of 96.459 last Friday. The Federal Open Market Committee’s (FOMC) two-day policy meeting is set to begin on Tuesday. With trade tensions rising, US growth slowing and hiring in May declining, markets have priced in at least two rate cuts by the end of 2019. The dollar was trading against the Indian rupee at Rs 69.543, the greenback was available in terms of the Malaysian ringgit at 4.167 and the US currency was 6.924 versus the Chinese yuan.

(This news/article originally appeared in Business Recorder on June 17th, 2019)

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