RECORDER REVIEW
KARACHI: The rupee moved cautiously against the dollar on the money market during the week, ended on March 3, 2018.
In the open market, the rupee gained 10 paisas against the dollar for buying at Rs 111.90 and it also picked up five paisas for selling at Rs 112.20. The rupee rose by 20 paisas in relation to the euro for buying and selling at Rs 137.30 and Rs 138.80.
In the inter-bank market, the rupee sustained present levels versus the dollar for buying and selling at Rs 110.56 and Rs 110.58.
According to the market sources, the rupee managed to hold present levels against the dollar owing to strong supply of dollars, in the meantime, it’s most likely that the dollar buying pressure may not allow the rupee to hold firmness in days to come, currency experts observed.
OPEN MARKET RATES: On Monday, the rupee dropped 10 paisas in terms of the dollar for buying at Rs 112.00, it also shed five paisas for selling at Rs 112.25. The rupee lost 75 paisas in relation to the euro for buying and selling at Rs 137.50 and Rs 139.00.
On Tuesday, the rupee picked up 30 paisas in terms of the dollar for buying at Rs 111.70, it also gained 25 paisas for selling at Rs 112.00, they said. The rupee also appreciated by 50 paisas in relation to the euro for buying and selling at Rs 137.00 and Rs 138.25.
On Wednesday, the rupee held the overnight levels in terms of the dollar for buying and selling at Rs 111.70 and selling at Rs 112.00. Whereas, the rupee posted fresh gain of 75 paisas in relation to the euro for buying and selling at Rs 136.00 and Rs 137.50.
On Thursday, the rupee lost 20 paisas in terms of the dollar for buying and selling at Rs 111.90 and Rs 112.20. Whereas, the rupee was unchanged in relation to the euro for buying and selling at Rs 136.00 and Rs 137.50, respectively.
On Friday, the rupee did not move any side against the dollar for buying and selling at Rs 111.90 and Rs 112.20, they said. The rupee fell sharply in relation to the euro for buying and selling at Rs 137.30 and Rs 138.80.
On Saturday, the rupee was unmoved against the dollar for buying and selling at Rs 111.90 and Rs 112.20. The rupee picked up 10 paisas in relation to the euro for buying and selling at Rs 137.30 and Rs 138.80.
INTER-BANK MARKET RATES: On Feb 26, the rupee shed one paisa versus the dollar for buying and selling at Rs 110.58 and Rs 110.59. On Feb 27, the rupee rose by one paisa versus the dollar for buying and selling at Rs 110.57 and Rs 110.58.
On Feb 28, the rupee shed one paisa versus the dollar for buying and selling at Rs 110.58 and Rs 110.59. On Msr 1, the rupee inched up one paisa versus the dollar for buying and selling at Rs 110.57 and Rs 110.58. On Mar, 2, the rupee moved cautiously against the dollar for buying and selling at Rs 110.56 and Rs 110.58,
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the dollar slipped on Monday, losing some of its recent momentum as US bond yields sagged, although moves were tempered by caution ahead of Federal Reserve Chairman Jerome Powell’s first congressional testimony.
The dollar index, which measures the greenback against a basket of six major rivals, eased 0.1 percent to 89.775. It gained nearly 0.9 percent last week and pulled away from a three-year low near 88.25 set on Feb. 16.
Against the yen, the dollar eased 0.3 percent to 106.61 yen . There was talk of dollar-selling by Japanese exporters ahead of the month-end.
The dollar was trading against the Indian rupee at Rs 64.635, the greenback was at 3.907 versus the Malaysian ringgit and the US currency was available at 6.312 in terms of the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Monday.82.94-82.96 (Previous 82.94-82.94).
In the second Asian trade, the dollar eased on Tuesday as investors awaited a slew of economic data this week and Federal Reserve Chairman Jerome Powell’s testimony, which could determine whether the US currency’s recovery from a three-year low has more room to run.
The dollar’s index against a basket of six major currencies fell 0.1 percent to 89.728. The greenback, however, is still 1.7 percent above a three-year trough near 88.25 set on Feb. 16.
The dollar was trading against the Indian rupee at Rs 64.875, the greenback was available at 3.910 in terms of the Malaysian ringgit and the US currency was at 6.307 in relation to the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Tuesday: 82.96-82.96 (Previous 82.94-82.96).
The dollar stood near a three-week high against a basket of currencies on Wednesday, after upbeat views from Federal Reserve Chairman Jerome Powell on the economy encouraged bets on further Fed interest rate hikes this year.
The dollar index, which measures the greenback against a basket of six major currencies, last traded at 90.395, after hitting a high of 90.498 on Tuesday, its strongest level in almost three weeks.
The dollar was available against the Indian rupee at Rs 65.073, the greenback was at 3.923 in relation to the Malaysian ringgit and the US currency was at 6.328 versus the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Wednesday: 82.96-82.96 (Previous 82.96-82.96).
In the fourth Asian trade, the dollar held firm on Thursday, drawing support after the Federal Reserve’s new chief Jerome Powell struck an optimistic tone on the US economy in a boost to rate hawks that sent global stocks tumbling.
The dollar index rose to a five-week high of 90.746, as Powell’s optimism on the US economy suggested the Fed is going to raise interest rates four times this year, one more than what markets had expected.
On the other hand, ECB President Mario Draghi said on Monday slack in the euro zone economy may be bigger than previously estimated.
The dollar was trading against the Indian rupee at Rs 65.218, the greenback was at 3.928 in terms of the Malaysian ringgit and the US currency was at 6.343 versus the Chinese. Inter bank buy/sell rates for the taka against the dollar on Thursday: 82.96-82.96 (Previous 82.96-82.96).
The yen surged against the dollar on Friday after Bank of Japan Haruhiko Kuroda said the central bank will consider an exit from its ultra easy monetary policy if its inflation target is achieved in the year ending in March 2020.
The dollar index against a basket of six major currencies fell 0.1 percent to 90.223. The index had already shed 0.4 percent overnight, peeled away from a high of 90.932 its strongest since Jan. 19 - after Trump announced on Thursday he would impose steep tariffs on imported steel and aluminium.
The US currency was trading against the Malaysian ringgit at 3.915 and the dollar was available at 6.351 in terms of the Chinese yuan.
In the NY last session trade, the dollar fell against most currencies on Friday, dropping to its lowest in more than two years against the yen, as President Donald Trump’s proposal to impose hefty tariffs on steel and aluminium imports raised prospects of a trade war that could damage the US economy.
Friday’s sell-off came just as the dollar had risen to multi-week highs amid strong data and an upbeat view on the economy from Federal Reserve Chairman Jerome Powell, which reinforced expectations of three or more interest rate hikes this year.
