Positive end
RECORDER REVIEW
KARACHI: The rupee posted modest gains against the dollar during the week, ended on Dec 30, 2017.
OPEN MARKET RATES: The rupee picked up 20 paisas in relation to the dollar for buying and selling at Rs 110.50 and Rs 110.80.
The rupee lost 90 paisas in terms of the euro for buying and selling at Rs 130.75 and Rs 132.75.
INTER-BANK MARKET RATES: The rupee rose by eight paisas in terms of the dollar for buying and selling at Rs 110.42 and Rs 110.45.
Commenting on the rupee’s movement versus the dollar, marketmen said that the national currency showed slight gains due to easy supply of dollar.
According to the reports, Pakistan’s central bank devalued the currency by about 5 percent this month, and the market expects further weakening of the rupee before the polls in mid-2018 to ease balance of payments pressure stemming from a widening trade deficit and growing fiscal deficit.
OPEN MARKET RATES: On Monday, main commercial centres were closed on account of birth anniversary of Quaid-e-Asam.
On Tuesday, the rupee failed to maintain overnight firmness, losing 40 paisas against the dollar for buying at Rs 110.70 and the national currency also shed 20 paisas for selling at Rs 111.00, they said.
The rupee also lost 30 paisas in terms of the euro for buying and selling at Rs 129.80 and Rs 131.80, they added.
On Wednesday, the rupee managed to gain 10 paisas against the dollar for buying and selling at Rs 110.60 and Rs 110.90, they said. The rupee, however, shed 45 paisas against the euro for buying and selling at Rs 130.25 and Rs 132.25.
On Thursday, the rupee maintained overnight levels against the dollar for buying and selling at Rs 110.60 and Rs 110.90.
Similarly, the rupee also did not move any side in relation to the euro for buying and selling at Rs 130.25 and Rs 132.25, they added.
On Friday, the rupee picked up 10 paisas in terms of the dollar for buying and selling at Rs 110.50 and Rs 110.80.
The rupee was trading in terms of the euro for buying and selling at Rs 130.75 and Rs 132.75.
On Saturday, the rupee sustained overnight levels in relation to the dollar for buying and selling at Rs 110.50 and Rs 110.80.
The rupee was also unmoved in terms of the euro for buying and selling at Rs 130.75 and Rs 132.75.
INTER-BANK MARKET RATES: On Dec 26, the rupee was available against the dollar at Rs 110.49 and Rs 110.51. On Dec 27, the rupee rose by two paisas versus the dollar for buying and selling at Rs 110.47 and Rs 110.50. On Dec 28, the rupee lost four paisas against the dollar for buying and selling at Rs 110.51 and Rs 110.53. On Dec 29, the rupee shed two paisas in terms of the dollar for buying and selling at Rs 110.42 and Rs 110.45.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, in holiday-thinned trading while the cost of swapping the yen for the dollar jumped as banks scrambled to raise dollars for the year-end period. The dollar stood little changed at 113.30 yen in Asian trade on Monday, hardly gaining traction from upbeat US economic data published on Friday. US consumer spending accelerated in November and shipments of key capital goods orders increased for the 10th straight month. The Federal Reserve’s preferred inflation measure, the personal consumption expenditures (PCE) price index excluding volatile food and energy prices, rose 0.1 percent in November for an annual increase of 1.5 percent, accelerating from 1.4 percent in October.
In the second Asian trade, the dollar held steady in Tuesday’s holiday-thinned trade, shrugging off upbeat Japanese economic data as market participants pondered about next year’s potential catalysts.
Markets in Australia and Hong Kong remained closed after Monday’s Christmas holiday, and many financial centres in Europe will also be shut on Tuesday.
The euro inched down 0.1 percent to $1.1869. The single currency gave up some ground last week after Catalan separatists won a regional election, deepening Spain’s political crisis in a sharp rebuke to Prime Minister Mariano Rajoy and European Union leaders who backed him.
Against the yen, the dollar was almost flat on the day at 113.30.
The dollar was trading against the Indian rupee at Rs 64.04, the greenback was available at 4.077 in terms of the Malaysian ringgit and the US currency was 6.552 in relation to the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Tuesday. 82.70-82.70 (Previous 82.70-82.70).
In the third Asian trade, the dollar eased against a basket of currencies on Wednesday, while commodity-linked currencies such as the Canadian dollar were underpinned by this week’s rally in oil prices.
The Australian dollar, however, rose 0.2 percent to $0.7746, reaching its highest level in two months. The US dollar eased 0.1 percent against a basket of six major currencies to 93.188. The dollar held steady against the yen at 113.19 yen.
The dollar was trading against the Indian rupee at Rs 64.13, the greenback was at 4.080 against the Malaysian ringgit and the US currency was available at 6.556 in relation to the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Wednesday. 82.70-82.70 (Previous 82.70-82.70).
In the fourth Asian trade, the dollar was on the defensive on Thursday, hampered by a recent dip in US 10-year bond yields, while commodity-linked currencies were bolstered by this week’s rally in metals and oil prices.
The dollar’s index against a basket of six major currencies slipped to 92.842 at one point, its lowest level since Dec. 1.
The index has dropped 9.2 percent this year, putting it on track for its biggest annual slide since 2003.
The euro scaled a 3-1/2 week high of $1.1920. The single currency has gained 13.3 percent so far this year, well on the way for its best annual performance since 2003.
The dollar was trading against the
Indian rupee 64.18, the greenback was available at 4.075 in terms of the Malaysian ringgit and the US currency was at 6.545 versus the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Thursday. 82.700-82.70 (Previous 82.70-82.70).
The dollar wallowed near a one-month low against a basket of currencies on Friday, while commodity currencies such as the Australian and Canadian dollars were at two-month highs thanks to firmer energy and metals prices.
The dollar index against a basket of six major currencies was unchanged at 92.602 after slipping 0.4 percent overnight to 92.573, its lowest since Nov. 27.
The index was on track to lose 0.5 percent this month.
Shin Kadota, senior strategist at Barclays in Tokyo, said rebalancing of positions by market participants signaled broad selling of the dollar, particularly the yen, towards the year’s end.
The dollar index will likely end the year down more than 9 percent, its worst showing since 2003, and a Reuters poll showed it is expected to lose a bit more ground against other major currencies next year.
The dollar sagged in 2017 although the US economy expanded, the Federal Reserve tightened monetary policy and the United States enacted a major overhaul of its tax code.
The dollar was trading against the Indian rupee at Rs 63.97, the greenback was at 4.055 in relation to the Malaysian ringgit and the US currency was at 6.517 in terms of the Chinese yuan.
At NY closing session, the dollar fell to its lowest in over three months against a basket of major currencies on Friday, marking its steepest annual drop since 2003, on doubts over durability of a pickup in US economic growth in wake of last week’s tax overhaul.
One of the most dramatic market developments in 2017 was the breath-taking rise of bitcoin and other cryptocurrencies. While they have pulled back at year-end, many of these digital currencies have surged in value this year.
The greenback may lag further against its peers in 2018 as investors expected other major central banks to reduce their stimulus while the Federal Reserve has signaled it would raise interest rates further, analysts said.
The dollar will face more headwinds in 2018,” said Chris Gaffney, President of World Markets at EverBank in St. Louis, Missouri. “The Fed won’t be going at it alone in terms of taking off more.
