Rising trend

RECORDER REVIEW

KARACHI: The rupee managed to gain modestly against the dollar on the money market during the week, ended on April 15, 2017.

In the inter-bank market, the rupee traded in a narrow band for buying and selling at Rs 104.85 and Rs 104.87.

In the open market, the rupee stayed put in terms of the dollar for buying and selling at Rs 106.00 and Rs 106.20. The rupee also showed no change in relation to the euro for buying and selling at Rs 112.00 and Rs 113.50.

Some experts were of the view that strong supply of dollars helped rupee to go up versus the US currency.

Country’s reserves in the first nine months of current fiscal year, remittances dropped 2.3 percent year on year.

INTER-BANK MARKET RATES: On Monday, the rupee was trading versus the dollar for buying and selling at Rs 104.85 and Rs 104.86. On Tuesday, the rupee shed one paisa versus the dollar for buying and selling at Rs 104.86 and Rs 104.87.

The national currency, however, lost 70 paisas versus the euro for buying and selling at Rs 112.20 and Rs 113.70. On Wednesday, the rupee stayed put versus the dollar for buying and selling at Rs 104.86 and Rs 104.87.

INTER-BANK MARKET RATES: The rupee shed one paisa versus the dollar for buying and selling at Rs 104.86 and Rs 104.87, they said.

OPEN MARKET RATES: On April 10, the rupee was down by five paisas in terms of the dollar for buying and selling at Rs 106.20 and Rs 106.40. The national currency, however, recovered 50 paisas versus the euro for buying and selling at Rs 111.50 and Rs 112.50. On April 11, the rupee, however, was higher by 10 paisas in terms of the dollar for buying and selling at Rs 106.10 and Rs 106.30.

On April 12, in line with the inter-bank, the rupee did not move any side in terms of the dollar for buying and selling at Rs 106.10 and Rs 106.30, they said. The rupee, however, gained 20 paisas versus the euro for buying and selling at Rs 112.00 and Rs 113.50, they said.

On April 13, the rupee picked up 10 paisas in relation to the dollar for buying and selling at Rs 106.00 and Rs 106.20. The national currency was down by 25 paisas in terms of the euro for buying and selling at Rs 112.25 and 113.75.

On April 14, the rupee did not move any side in terms of the dollar for buying and selling at Rs 106.00 and Rs 106.20.

The rupee, however, gained 25 paisas in relation to the euro for buying and selling at Rs 112.00 and Rs 113.50.

On April 15, the rupee stayed put in terms of the dollar for buying and selling at Rs 106.00 and Rs 106.20.

The rupee also showed no change in relation to the euro for buying and selling at Rs 112.00 and Rs 113.50.

OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the dollar started the week at three-week highs against a currency basket on Monday, after a key US Federal Reserve official reinforced the central bank’s commitment to continue raising interest rates.

The dollar index, which tracks the greenback against six major rival currencies, added 0.1 percent to 101.230 after rising as high as 101.340, reaching its highest levels since March 15.

The dollar was trading against the Indian rupee at Rs 64.423, the greenback was at 4.438 in terms of the Malaysian ringgit and the US currency was at 6.907 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Monday: 79.75-79.75 (previous 79.72-79.72).

In the second Asian trade, the dollar fell against the yen, as concerns over tensions with North Korea and Syria weighed on US Treasury yields and offset expectations of US interest rate hikes.

“The market has become more cautious about Trump’s policies, with attention to increased risks,” said Harumi Taguchi, principal economist at IHS Markit in Tokyo. “The yen is easy to buy in such situations.”

China and South Korea agreed on Monday to impose tougher sanctions on North Korea if it carries out nuclear or long-range missile tests, a senior official in Seoul said, as a US Navy strike group headed to the region in a show of force.

The dollar was trading against the Indian rupee at Rs 64.560, the greenback was at 4.433 versus the Malaysian ringgit and the US currency was at 6.902 in terms of the Chinese yuan.

Inter bank buy/sell rates for the taka against the dollar on Tuesday: 79.77-79.77 (previous 79.75-79.75).

In the third Asian trade, the yen hit five-month highs against the dollar, euro and sterling, as simmering geopolitical tensions checked risk appetite and put the safe-haven Japanese currency in favour.

Investors’ flight-to-safety underpinned traditional safe-havens like the yen, Treasuries and gold, amid fresh concerns about the French presidential election and possible US military action against Syria and North Korea. The dollar was at 109.465 yen after going as low as 109.350, its weakest since Nov. 17.

The US currency had slid more than 1 percent the previous day from highs of 110.920, with the 110.00 threshold finally being breached after several close calls over the past few weeks.

The euro, which sank more than 1 percent overnight, extended losses and touched a five-month low of 116.020 yen. The common currency was on track to post its 13th straight session of losses versus the yen.

The dollar was trading against the Indian rupee at Rs 64.713, the greenback was at 4.428 in terms of the Malaysian ringgit and the US currency was at 6.894 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Wednesday: 79.78-79.78 (previous 79.77-79.77).

In the fourth Asian trade, the dollar slumped broadly, falling to a five-month low against the yen, after US President Donald Trump helped accelerate its recent decline by saying the currency was too strong.

The greenback took a heavy hit after Trump told the Wall Street Journal that the dollar “is getting too strong” and that he would prefer the Federal Reserve to keep interest rates low.

The comments were a fresh reminder of the president’s protectionist trade rhetoric, which has been a source of concern for dollar bulls.

Trump’s comments came at a time when some had begun to think that perhaps the president was not as supportive of a weak dollar as initially perceived,” said Shin Kadota, senior strategist at Barclays in Tokyo. But he reiterated his view that a strong currency hurts US competitiveness, adding fresh downward pressure on the dollar.

In the final Asian trade, the dollar nursed losses, on track for a losing week as continuing tensions in North Korea underpinned the perceived safe-haven Japanese currency.

The dollar index, which tracks the US unit against a basket of six rival currencies, steadied at 100.590, slightly higher on the day but down 0.6 percent for the week. The dollar rose 0.8 percent against the South Korean won, which last stood at 1,138.5.

In another part of the world, the US military said on Thursday that it dropped “the mother of all bombs,” the largest non-nuclear device it has ever unleashed in combat, on a network of caves and tunnels used by Islamic State in eastern Afghanistan. The dollar edged up 0.1 percent on the day to 109.15 yen, but was down 1.7 percent for the week.

According to Reuters, most of markets will be closed on Friday in New York, London and Asia. Markets will re-open on Monday, but some will be closed to observe Easter holiday.