The rupee could not maintain stable trend against the dollar on the local currency market during the week ended on Oct 5, 2019. The rupee drifted lower by 38 paisas in terms of the dollar for buying and selling at Rs 156.53 and Rs 156.55.
INTER-BANK MARKET RATES: OPEN MARKET RATES: The rupee was down by 30 paisas more in terms of the dollar for buying and selling at Rs 156.30 and Rs 156.80, they added. The rupee lost 50 paisas versus the euro for buying and selling at Rs 171.50 and Rs 173.50, they added.
Marketmen said that during the week, the rupee held it’s firmness due to easy supply of dollar. At the closing sessions, the rupee started showing weakness owing the rising demand for the greenback, they said. Country’s foreign exchange reserves stood at 7.74 billion dollars, they added.
Also Read: THE RUPEE: stable trend
INTER-BANK MARKET RATES: On Monday, the rupee was available versus the dollar for buying and selling at Rs 156.15 and Rs 156.20. On Tuesday, the rupee dropped modestly versus the dollar for buying and selling at Rs 156.35 and Rs 156.37.
On Wednesday, the rupee held the overnight levels versus the dollar for buying and selling at Rs 156.34 and Rs 156.36. On Wednesday, the rupee inched up by one paisa in terms of the dollar for buying and selling at Rs 156.33 and Rs 156.35. On Friday, he rupee lost 20 paisas in terms of the dollar for buying and selling at Rs 156.53 and Rs 156.55.
OPEN MARKET RATES: On Sept 30, the rupee was unchanged against the dollar for buying and selling at Rs 156.00 and Rs 156.50, they added. While, the rupee shed 20 paisas in terms of the euro for buying at Rs 170.00 and the local currency did not show any change for selling and Rs 171.70, they added. On Oct 1st, the rupee was did not move any side against the dollar for buying and selling at Rs 156.00 and Rs 156.50. While, the rupee was down by 50 paisas in terms of the euro for buying and selling at Rs 170.50 at Rs 172.50.
On Oct 2, the rupee stayed put against the dollar for buying and selling at Rs 156.00 and Rs 156.50. The rupee also did not budge any side in terms of the euro for buying and selling at Rs 170.50 at Rs 172.50, they added. On Oct 3, the rupee was almost unchanged against the dollar for buying and selling at Rs 156.00 and Rs 156.50. The rupee shed 25 paisas versus the euro for buying and selling at Rs 170.75 at Rs 172.57.
On Oct 4, the rupee followed the suit against the dollar in the open market, losing 20 paisas for buying and selling at Rs 156.20 and Rs 156.70.
The rupee continued erosion versus the euro, shedding further 25 paisas for buying and selling at Rs 171.00 and Rs 173.00. The rupee shed 10 paisas more in terms of the dollar for buying and selling at Rs 156.30 and Rs 156.80, they added. On Oct 5, the rupee lost 50 paisas versus the euro for buying and selling at Rs 171.50 and Rs 173.50, they added.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the dollar found broad support on Monday as global political uncertainty and fears over a widening of the Sino-US trade war kept investors in safe harbours ahead of a slew of global economic indicators this week. The greenback was steady against most major currencies. It held firm on the Japanese yen at 108.93 per dollar and sterling at $1.2287, while easing very slightly against the euro to $1.0932.
It gained against riskier, trade-exposed currencies such as the Australian dollar and the Chinese yuan. The biggest loser was the New Zealand dollar, which fell half a percentage point as business confidence hit its weakest in more than 11 years.
The dollar was trading against the Indian rupee at Rs 70.650, the greenback was at 4.185 in terms of the Malaysian ringgit and the US currency was at 7.125 versus the Chinese yuan.
In the second Asian trade, the dollar rose to its highest in more than two years versus a basket of currencies on Tuesday before data that is forecast to show the US manufacturing sector returned to growth, which would ease concern about the impact of the trade war with China.
The euro teetered near its lowest in more than two years against the greenback before data expected to show European inflation has remained tepid, suggesting euro zone policy will remain accommodative for some time.
The dollar index against a basket of six major currencies rose 0.10% to 99.479, after briefly touching the highest since May 12, 2017.
The dollar rose 0.17% to 108.26 yen, close to its strongest level in almost two weeks.
The dollar was trading against the Indian rupee at Rs 70.855 and the greenback was at 4.191 in terms of the Malaysian ringgit. In the third Asian trade, Worries about a slowing US economy and the possibility of further interest rate cuts in the wake of weak US manufacturing data kept the dollar pinned down on Wednesday, as investors sought shelter elsewhere.
The greenback steadied or fell against most major currencies, after dropping from a two-year high overnight when data showed the US manufacturing activity contracted at the fastest pace in more than a decade in September.
The dollar was trading at 4.190 against the Malaysian ringgit. In the fourth Asian trade, the dollar eased on Thursday, sliding to fresh one-week lows against the euro and yen as investor anxiety deepened over fresh signs of slowing US economic growth and a broadening of global trade frictions.
The greenback fell overnight after data showed hiring by US private employers had cooled in September, the latest indicator that the Sino-US trade dispute is hurting the world’s largest economy.
It remained wobbly in Asian hours, while stocks tumbled as investors grappled with the deepening global economic gloom. The dollar was trading against the Indian rupee at Rs 71.110 and the greenback was available at 4.186 in terms of the Chinese yuan.
In the final Asian trade, the dollar stepped back on Friday after a soft US service sector survey stoked worries that pressure from US trade disputes with China and other countries could spill over into the broader US economy and tip it into a recession.
The dollar index fell to 98.905, shedding about 0.8% after hitting 2 1/2-year high this week. Against the yen, the US currency eased to 106.91 yen, having fallen to one-month low of 106.48 in US trade on Thursday. The euro stood at $1.0972, extending its recovery from a near 2 1/2-year low of $1.0879 set on Tuesday.
The dollar was trading against the Indian rupee at Rs 70.860 and the greenback was at 4.183 in terms of the Malaysian ringgit. In the final US trade, the dollar inched lower on Friday, giving up gains fueled by a generally solid US jobs report that slightly underperformed expectations, as investors worried about political risk in the United States and ongoing trade talks with China.
The greenback hit session highs against the Japanese yen and euro following the jobs report, after trading lower for most of the session. But by afternoon trading, the dollar’s rally faded.
The dollar was down roughly 1% against the yen this week, its worst weekly percentage loss in two months. Data showed US non-farm payrolls increased by 136,000 jobs last month. August data was revised to show 168,000 jobs created instead of the previously reported 130,000. Economists polled by Reuters had forecast payrolls would increase by 145,000 jobs in September.
(This news/article originally appeared in Business Recorder on October 7th, 2019)