Rupee rising trend

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SOURCEBusiness Recorder
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KARACHI: The rupee appreciated modestly in terms of the dollar on the money market during the week, ended on Nov 2, 2019.

The rupee managed to gain on the back of comfortable supply of dollars, marketmen said and adding that the local currency likely to rise but slightly.

They also observed that if the dollar’s demand rises, the rupee may decline marginally.

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INTER-BANK MARKET RATES: The rupee picked up 20 paisas against the dollar for buying and selling at Rs 155.65 and Rs 155.67.

OPEN MARKET RATES: On Nov 2nd, the rupee gained 30 paisas in relation to the dollar for buying and selling at Rs 155.50 and Rs 155.80. The rupee was down by 20 paisas against the euro for buying and selling at Rs 173.00 and Rs 175.00.

INTER-BANK MARKET RATES: On Monday, the rupee appreciated by five paisas in terms of the dollar for buying and selling at Rs 155.83 and Rs 155.85. On Tuesday, the rupee extended overnight gains, picking up six paisas in terms of the dollar for buying and selling at Rs 155.76 and Rs 155.78.

On Wednesday, the rupee rose by five paisas in terms of the dollar for buying and selling at Rs 155.72 and Rs 155.74. On Thursday, the rupee gained seven paisas against the dollar at Rs 155.65 and Rs 155.68.

On Friday, the rupee almost maintained the overnight levels against the dollar for buying and selling at Rs 155.65 and Rs 155.67.

Also Read: Rupee minor changes

OPEN MARKET RATES: On October 28, the rupee held the week-end levels in relation to the dollar for buying and selling at Rs 155.80 and Rs 156.10. On October 29, the rupee lost 50 paisas versus the euro for buying and selling at Rs 172.50 and Rs 174.50.

On Oct 29, the rupee followed suit in relation to the dollar, gaining 10 paisas for buying and selling at Rs 155.70 and Rs 156.00. The rupee recovered 30 paisas versus the euro for buying and selling at Rs 172.20 and Rs 174.20.

On Oct 30, the rupee maintained an upward trend versus the dollar, gaining 10 paisas for buying and selling at Rs 155.60 and Rs 155.90. The rupee shed 10 paisas versus the euro for buying and selling at Rs 172.30 and Rs 174.30.

On Oct 31, the rupee picked up 10 paisas versus the dollar for buying and selling at Rs 155.50 and Rs 155.80.

On Nov 1st, the rupee held the last levels in relation to the dollar for buying and selling at Rs 155.50 and Rs 155.80.

The national currency was trading versus the euro for buying and selling at Rs 172.80 and Rs 174.80. On Nov 2nd, the rupee managed to hold overnight levels in relation to the dollar for buying and selling at Rs 155.50 and Rs 155.80. The rupee was down by 20 paisas against the euro for buying and selling at Rs 173.00 and Rs 175.00.

OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the dollar traded near its highest in more than two months versus the yen on Monday ahead of a US Federal Reserve meeting this week where policymakers are expected to cut interest rates but emphasise their reluctance to ease policy further.

Sterling edged lower versus the dollar and the euro, with an agreement expected later on Monday to delay Britain’s divorce from the European Union to Jan. 31 after Prime Minister Boris Johnson failed to win approval for his Brexit timetable.

In the second Asian trade, hopes for an easing in Sino-US tensions buoyed trade-exposed Asian currencies on Tuesday, while growing expectations the US Federal Reserve could take a wait-and-see approach to further easing underpinned the dollar.

Most moves were modest, though, as caution tempered the mood. The Australian and New Zealand dollars each rose nearly 0.3%. The safe-haven currencies of the Japanese yen and Swiss franc each eased very slightly.

US President Donald Trump had said a trade agreement looked to be ahead of schedule on Monday, without detailing the timing.

The United States also said it was studying whether to extend tariff suspensions due to expire in December.

The dollar was trading against the Indian rupee at Rs 70.880, the greenback was at 4.183 in terms of the Malaysian ringgit and the US currency was available at 7.064 versus the Chinese yuan.

In the third Asian trade, the dollar traded narrowly as markets braced for a rate cut by the Federal Reserve later on Wednesday, while sterling steadied after Britain’s lower house of parliament approved calling an early election in December that might break the Brexit deadlock.

The dollar was steady against the euro at $1.1110 and flat versus a basket of six major currencies at 97.698 as investors awaited the Fed’s interest rate decision.

Against the yen, the greenback was also little moved at 108.84 yen, not far from its three-month high of 109.07 yen touched on Tuesday.

The US central bank is expected to cut its policy rate for a third time in a row when it concludes its two-day meeting on Wednesday.

The dollar was trading against the Indian rupee at Rs 70.983, the greenback was at 4.183 in terms of the Malaysian ringgit and the US currency was at 7.062 in relation to the Chinese yuan.

In the fourth session, the Australian and New Zealand dollars firmed on Thursday as investors scaled back wagers on local interest rate cuts after the US Federal Reserve signalled a pause in its easing campaign.

Some solid domestic data on housing and trade also helped offset disappointing readings on Chinese manufacturing and services activity.

New ASEAN trade deal to be signed in 2020

The Aussie reached a three-month top at $0.6928, having been as low as $0.6849 at one stage on Wednesday. In a bullish technical development, it also cleared major resistance at the September high of $0.6895.

The kiwi dollar popped up to $0.6424, leaving behind Wednesday’s low of $0.6335, though it still faced tough resistance at the October peak of $0.6436.

The dollar was trading against the Indian rupee at Rs 70.798, the greenback was available at 4.175 versus the Malaysian ringgit and the US currency was at 7.042 in terms of terms of the Chinese yuan.

In the final US trade, the dollar rose on Friday after data showed that US jobs growth slowed less than expected in October, while wages gained and hiring in the prior two months was stronger than previously estimated.

Non-farm payrolls increased by 128,000 jobs last month, while average hourly earnings increased six cents, or 0.2% after being unchanged in September.

Temporary census workers also left their jobs during the month.

The dollar index against a basket of six major currencies rose as high as 97.45, up from 99.27 before the data, before retracing to 97.30, up 0.02% on the day.

In the final Asian trade, the dollar traded near a three-week low versus the yen on Friday before a US employment report expected to show a slowdown in job creation, highlighting concerns about the health of the world’s largest economy.

The US currency also nursed losses against the euro and the pound after Bloomberg reported that Chinese officials have doubts about reaching a comprehensive long-term solution to the U.S.-Sino trade war.

The dollar was trading against the Indian rupee at Rs 70.910, the greenback was available at 4.170 versus the Malaysian ringgit and the US currency was at 7.043 in terms of the Chinese yuan.

In the final US trade, the dollar rose on Friday after data showed that US jobs growth slowed less than expected in October, while wages gained and hiring in the prior two months was stronger than previously estimated.

Non-farm payrolls increased by 128,000 jobs last month, while average hourly earnings increased six cents, or 0.2% after being unchanged in September.

Temporary census workers also left their jobs during the month.

The dollar index against a basket of six major currencies rose as high as 97.45, up from 99.27 before the data, before retracing to 97.30, up 0.02% on the day.

(This news/article originally appeared in Business Recorder on November 4th, 2019)

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