Modest fall, more erosion likely

RECORDER REVIEW

KARACHI: The rupee failed to sustain its present levels against the dollar on the currency market during the week, ended on October 7, 2017.

Commenting on fresh erosion in the value of the rupee, some experts said that the buying of dollar increased, so it looks that the rupee may not sustain its present levels in the coming days.

The rupee, they said that likely to travel in negative territory after shedding modest ground in terms of the dollar.

OPEN MARKET RATES: The rupee managed to halt sharp erosion in it’s value despite the strong demand for dollars. The domestic currency was down by 30 paisas versus the dollar for buying and selling at Rs 106.50 and Rs 106.70, they said.

While, the rupee stayed put in relation to the euro for buying and selling at 124.50 and Rs 125.75, they said.

INTER-BANK MARKET RATES: The national currency managed to hold it’s levels ranging between Rs 105.40-105.44, experts said.

OPEN MARKET RATES: On Monday, the rupee dropped 10 paisas against the dollar for buying and selling at Rs 106.20 and Rs 106.40, they said. The rupee, however, gained 60 paisas in terms of the euro for buying and selling at Rs 124.50 and Rs 125.75. On Tuesday, the rupee shed 10 paisas against the dollar for buying and selling at Rs 106.30 and Rs 106.50. The rupee also lost 25 paisas in terms of the euro for buying and selling at Rs 124.75 and Rs 126.00.

On Wednesday, the rupee was unchanged against the dollar for buying and selling at Rs 106.30 and Rs 106.50. The rupee also showed no major changes versus the euro for buying and selling at Rs 124.80 and Rs 126.00.

On Thursday, the rupee slid by 10 paisas versus the dollar for buying and selling at Rs 106.40 and Rs 106.60.

The rupee picked up by 30 paisas in relation to the euro for buying and selling at Rs 124.50 and Rs 125.50.

On Friday, the rupee dropped by 10 paisas versus the dollar for buying and selling at Rs 106.50 and Rs 106.70. The rupee picked up by 30 paisas in relation to the euro for buying and selling at Rs 124.50 and Rs 125.50.

On Saturday, the rupee, somehow, resisted further decline versus the dollar for buying and selling at Rs 106.50 and Rs 106.70. The rupee was unchanged in relation to the euro for buying at 124.50 while, the national currency, shed 25 paisas for selling at Rs 125.75.

INTER-BANK MARKET RATE: On October 2, the rupee shed one paisa in terms of the dollar for buying and selling at Rs 105.42 and Rs 105.44.

On Oct 3, the rupee almost held the overnight levels in relation to the dollar for buying and selling at Rs 105.42 and Rs 105.43. On Oct 4, the rupee inched up by one paisa in relation to the dollar for buying and selling at Rs 105.41 and Rs 105.42. On Oct 4, the rupee did not move any side against the dollar for buying and selling at Rs 105.41 and Rs 105.42.

On Oct 5, the rupee was available against the dollar for buying and selling at Rs 105.41 and Rs 105.43. On Oct 7, the rupee was available against the dollar for buying and selling at Rs 105.41 and Rs 105.43.

OVERSEAS OUTLOOK FOR DDOLLAR: In the first Asian trade, the euro slipped after a violence-marred independence vote in Spain’s Catalonia region fuelled anxiety over political risk in the euro zone, and as a renewal of the “Trumpflation trade” lifted the dollar across the board.

Inter bank buy/sell rates for the taka against the dollar on Monday: 80.80-80.80 (previous 80.80-80.80).

In the second Asian trade, the dollar struck a 1-1/2-month high as Treasury yields rose after a strong reading for US manufacturing activity hardened expectations for US interest rates to rise by the year-end.

The Australian dollar slipped to its lowest in more than two months after the Reserve Bank of Australia left interest rates unchanged and gave a somewhat cautious assessment of the local economy.

The dollar index against a basket of six major currencies was up 0.3 percent at 93.848 after touching 93.891, its highest since Aug. 17.

In the third Asian trade, the dollar stepped back from a 1-1/2-month high against a basket of currencies on speculation that US President Donald Trump’s choice for the next Fed chair could be a less hawkish candidate than some had expected.

US Treasury Secretary Steven Mnuchin favours Fed Governor Jerome Powell over former governor Kevin Warsh, Politico reported. Both Warsh and Powell were interviewed at the White House last week.

Inter bank buy/sell rates for the taka against the dollar on Wednesday: 80.80-80.80 (previous 80.80-80.80).

In the fourth Asian trade, the dollar inched up against a basket of its peers after data shed more positive light on the US economy, although sagging Treasury yields tempered the greenback’s gains.

The dollar index against a group of six major currencies was 0.05 percent higher at 93.500. It had declined 0.1 percent the previous day as speculation that the next head of the Federal Reserve could be a less hawkish candidate than expected knocked it off seven-week highs.

The greenback managed to crawl back after Wednesday’s data showed US service sector growth hit is fastest in 12 years in September and private employers added more jobs than forecast despite Hurricane Harvey and Irma. The gains, however, were kept in check with Treasury yields having pulled back from three-month peaks.

“The dollar has not been able to take full advantage of the latest series of strong US data as Treasury yields have come down from their peaks,” said Junichi Ishikawa, senior forex strategist at IG Securities in Tokyo.

The dollar index had scaled the seven-week peak of 93.920 on Tuesday, when the 10-year Treasury yield hit the three-month high of 2.371 percent after strong US manufacturing data hardened expectations for the Fed to raise interest rates by year-end.

Inter bank buy/sell rates for the taka against the dollar on Thursday: 80.80-80.80 (previous 80.80-80.80).

In the Asian final close, the dollar hit seven-week highs versus a basket of currencies, supported by hopes for progress on US tax reforms, while sterling was under the gun on worries over a possible leadership battle in the British government.

The dollar index, which measures the dollar’s value against a basket of six major currencies, edged up 0.1 percent to 94.097. It rose to 94.112 at one point on Friday, its strongest level since mid-August.

The dollar was trading against the Indian rupee at Rs 65.248 and the greenback was available versus the Malaysian ringgit at 4.235.

At NY close, the US dollar tumbled on Friday on a report that North Korea is preparing to test a long-range missile, overturning earlier gains after the government’s jobs report for September showed an unexpected rise in wages.

RIA news agency cited a Russian lawmaker’s making comments on the missile test, which North Korea believes can reach the US West Coast.