Modest appreciation

RECORDER REVIEW

KARACHI: The rupee fluctuated modestly against the dollar on the money market during the week, ended on February 03, 2018.

INTER-BANK MARKEET RATES: The rupee almost moved within the band of Rs 110.55 and Rs 110.56 in relation to the dollar for buying and selling, respectively.

Commenting on the cautious movement of the national currency in relation to the dollar, market viewers said that despite persistent demand for dollars in the currency market, the rupee showed modest gains versus the dollar, it’s an indication that the rupee may be able to sustain its present levels in the short-term.

OPEN MARKET RATES: On Jan 29th, the rupee shed 10 paisas in terms of the dollar for buying and selling at Rs 112.40 and Rs 112.70. While, the rupee stayed put against the euro for buying and selling at Rs 139.00 and Rs 141.00, they added.

On Jan 30th, the rupee was almost unchanged in terms of the dollar for buying and selling at Rs 112.40 and Rs 112.70. While, the rupee dropped by 30 paisas against the euro for buying and selling at Rs 139.00 and Rs 141.00.

On Jan 31st, the rupee picked up 40 paisas in terms of the dollar for buying and selling at Rs 112.00 and it also gained 20 paisas for selling at Rs 112.50.

While, the rupee dropped by 50 paisas against the euro for buying and selling at Rs 139.50 and Rs 141.50.

On Feb 1st, the rupee recovered 25 paisas in terms of the dollar for buying and selling at Rs 111.75 and Rs 112.25. The rupee also gained 70 paisas against the euro for buying and selling at Rs 138.80 and Rs 140.80.

On Feb 2nd, the rupee shed five paisas in terms of the dollar for buying at Rs 111.80, the national currency, however, gained 15 paisas for selling and Rs 112.10. The rupee lost 40 paisas versus the euro for buying and selling at Rs 139.20 and Rs 141.20.

On Feb 3, the rupee picked up 10 paisas in terms of the dollar for buying and selling Rs 111.70 and Rs 112.00.

The rupee also gained 90 paisas versus the euro for buying and selling at Rs 138.30 and Rs 140.30.

INTER-BANK MARKET RATES: On Monday, the visible changes were seen in the value of the rupee in relation to the dollar for buying and selling at Rs 110.54 and Rs 110.55, they said. On Tuesday, the rupee moved cautiously in relation to the dollar for buying and selling at Rs 110.55 and Rs 110.56.

On Wednesday, the rupee fluctuated at present levels in relation to the dollar for buying and selling at Rs 110.45 and Rs 110.55, they said.

On Thursday, the rupee almost held the overnight levels in relation to the dollar for buying and selling at Rs 110.54 and Rs 110.55.

INTER-BANK MARKET RATES: The rupee inched down by one paisa in relation to the dollar for buying and selling at Rs 110.55 and Rs 110.56, they said.

OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the dollar crawled up from lows on Monday but struggled to pull ahead from six straight weeks of losses on its evaporating yield advantage and doubts about Washington’s commitment to a strong currency.

The dollar index against a basket of six major currencies rose 0.2 percent to 89.215, extending its rebound from 88.429, a three-year nadir set on Thursday.

The currency was marginally helped by US GDP data on Friday, which showed strong domestic consumption and capital spending even though the headline figure was weaker than expected due to a rise in imports.

Yet traders expect more headwinds for the dollar, which has been pummelled by renewed worries that President Donald Trump may use currency policy as a tool to press other countries to get better “deals” on trade.

The dollar was available against the Indian rupee at Rs 63.515, the greenback was at 3.867 in terms of the Malaysian ringgit and the US currency was at 6.326 versus the Chinese yuan.

Inter bank buy/sell rates for the taka against the dollar on Monday: 82.90-82.90 (Previous 82.90-82.90).

In the second Asian trade, the dollar held above a recent three-year low against a basket of major currencies on Tuesday, with traders turning their attention to US President Donald Trump’s State of the Union speech and a Federal Reserve policy meeting for catalysts.

The dollar rose 0.1 percent against a basket of six major currencies to 89.430, having pulled up from a low of around 88.43 set last week, its weakest level since December 2014.

Analysts said a renewed rise in US bond yields this week lent some support to the dollar. The US 10-year Treasury yield reached a peak of 2.733 percent in Asian trading on Tuesday, the highest since April 2014, and last stood at 2.712 percent.

The euro eased 0.1 percent to $1.2373, edging away from a three-year high of $1.2538 touched last week.

The dollar was available against the rupee at Rs 63.698, the greenback was at 3.894 in terms of the Malaysian ringgit and the US currency was trading at 6.335 in relation to the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Tuesday: 82.90-82.90 (Previous 82.90-82.90).

In the third Asian trade, the dollar inched lower against a basket of major rivals on Wednesday, showing scant reaction so far to US President Donald Trump’s State of the Union address.

In his speech, Trump urged bitterly divided Republicans and Democrats to work toward compromises on immigration and infrastructure after a bruising year of partisan battles that centred on Trump’s leadership.

The dollar index, which measures the greenback against a basket of six major currencies, was last down 0.1 percent on the day at 89.062, staying above a three-year low around 88.43 set last week.

The euro edged up 0.2 percent to $1.2426. The yen was on the back foot, after the Bank of Japan increased its buying of medium-term Japanese government bonds (JGBs) in a move seen as a warning shot against further rises in bond yields.

The dollar tacked on 0.1 percent to 108.87 yen, having risen to as high as 109.095 yen after the BOJ announcement.

The BOJ’s move came after the 10-year JGB yield had risen to a 6-1/2-month high of 0.095 percent on Tuesday. The central bank’s policy guidance is to control the 10-year yield “around zero percent.”

The dollar was trading against the Indian rupee at Rs 63.68 and the greenback was available at 6.309 versus the Chinese yuan.

Inter bank buy/sell rates for the taka against the dollar on Wednesday: 82.90-82.90 (Previous 82.90-82.90).

In the fourth Asian trade, the dollar held steady against a basket of major currencies on Thursday after the Federal Reserve signalled its confidence about inflation and growth in the world’s biggest economy, reinforcing views it will raise rates several more times this year.

Traders are now awaiting a host of indicators including non-farm payrolls to see if they offer more than a brief respite to the ailing dollar.

The Fed kept interest rates unchanged on Wednesday but said inflation is likely to quicken this year, bolstering expectations borrowing costs will continue to climb under incoming central bank chief Jerome Powell.

The dollar was trading against the Indian rupee at Rs 63.590 and the greenback was at 6.292 in terms of the Chinese yuan.

Inter bank buy/sell rates for the taka against the dollar on Thursday: 82.90-82.90 (Previous 82.90-82.90).

In the final Asian trade, the dollar nursed losses against a basket of currencies on Friday and was on track for a weekly fall as investors focused on renewed economic strength in the eurozone.

The yen, meanwhile, largely shrugged off a special bond purchase operation by the Bank of Japan to stem the rise in Japanese bond yields which had tracked their global peers higher.

The dollar index, which tracks the greenback against a basket of six major rivals, was nearly flat on the day at 88.701, holding above a three-year low of 88.429 set one week ago but still down 0.4 percent for the week.

The euro edged down 0.1 percent on the day to $1.2499, but remained within sight of last week’s 3-year high of $1.2538. For the week, it was up 0.6 percent.

On Friday, the BOJ offered to buy an unlimited amount of JGBs with more than five to ten years left to maturity at 2 basis points above the previous close, which is 0.110 percent — the same level at which it has offered similar unlimited buying in the past.

The dollar was trading against the Indian rupee at Rs 64.070, the greenback was at 3.887 in terms of the Malaysian ringgit and the US currency was at 6.282 versus the Chinese yuan.

In the final NY trade, the US dollar rose on Friday against a number of currencies including the Japanese yen and the euro after strong national jobs data, but the greenback later pared gains and investors were not convinced advances would last past the day.

US job growth surged in January and wages increased further, recording their largest annual gain in more than 8-1/2 years.

Non-farm payrolls jumped by 200,000 jobs last month after rising 160,000 in December, the Labour Department said.

The data contributed to the sentiment that inflation is picking up and higher interest rates are on the horizon, said Jeff Kravetz, regional investment director at US Bank Wealth Management in Scottsdale, Arizona.

The dollar index, tracking the unit against a basket of major currencies, was up 0.58 percent at 89.185 at 2:55 p.m. EST (1955 GMT). On the day, the greenback scored its best daily performance since Oct. 26.

Against the yen, the dollar reached its highest since Jan. 23, and was last up 0.79 percent at 110.25. The yen has correlated inversely with US Treasuries. The 10-year yield hit a four-year high on the day and last edged to 2.8506 percent, while the 30-year rose to 3.0961 percent.

After the jobs data, the euro fell against the dollar. While it pared losses during the day, it did not make up its decline and last fell 0.46 percent to $1.2451.