The rupee almost managed to hold present levels against the dollar on the money market during the week, ended on Nov 17, 2018. The rupee moved cautiously versus the dollar for buying and selling at Rs 133.99 and Rs 134.00.
INTER-BANK MARKET RATES: OPEN MARKET RATES: The rupee showed slight variations in relation to the dollar for buying and selling at Rs 133.90 and Rs 134.20, they said. The domestic currency, fell steeply in terms of the euro for buying and selling at Rs 152.00 and Rs 154.00. According to the central bank, the country's foreign exchange reserves decrease $196 million to $7,483 million in the week ending Nov 9, compared to $7,679 million in the previous week. Commenting on the dollar's rise versus the rupee, the marketmen said that the banks purchased dollars to meet the payment requirements, which caused dearth of dollars position and it seems that the dollar may gain further ground in days to come.
INTER-BANK MARKET RATES: On Monday, the rupee shed 10 paisas versus the dollar for buying and selling at Rs 133.94 and Rs 133.98. On Tuesday, the rupee shed 5 paisas versus the dollar for buying and selling at Rs 133.98 and Rs 134.03. On Wednesday, the rupee was inert versus the dollar for buying at Rs 133.98 while the national currency gained 3 paisas for selling and Rs 134.00. On Thursday, the rupee was almost unchanged versus the dollar for buying and selling at Rs 133.99 and Rs 134.00. The rupee stayed put versus the dollar for buying and selling at Rs 133.99 and Rs 134.00, dealers said.
OPEN MARKET RATES: On Nov 12, the rupee did not show any change in relation to the dollar for buying at Rs 133.80, it, however, fell by 10 paisas for selling at Rs 134.30. The domestic currency managed to gain 30 paisas in terms of the euro for buying at Rs 150.30, it, however, dropped the same amount for selling at Rs 152.30. On Nov 13, the rupee lost 50 paisas in relation to the dollar for buying and selling at Rs 133.80 and Rs 134.20. The domestic currency rose by 15 paisas in terms of the euro for buying and selling at Rs 150.60 and Rs 152.00.
On Nov 15, the rupee was down by 20 paisas in relation to the dollar for buying and selling at Rs 133.80 and Rs 134.30, they said. The domestic currency lost 70 paisas in terms of the euro for buying and selling at Rs 151.00 at Rs 153.00, it, however, dropped the same amount for, they said.
On Nov 16, the rupee recovered 30 paisas in relation to the dollar for buying at Rs 133.70 and it also gained 50 paisas for selling at Rs 134.00. The domestic currency, shed 50 paisas in terms of the euro for buying at Rs 151.50 and it, however, gained recovered the same amount for selling at Rs 152.50.
On Nov 17, the rupee slid by 10 paisas in relation to the dollar for buying and selling at Rs 133.90 and Rs 134.20, they said. The domestic currency, dropped sharply in terms of the euro for buying and selling at Rs 152.00 and Rs 154.00.
OVERSEAS MARKET OUTLOOK FOR DOLLAR: In the first Asian trade, the dollar built on last week's gains and rose towards a 16-month high on Monday as traders expect the US Federal Reserve to keep tightening monetary policy.
The dollar index gained 0.12 percent on Monday, changing hands at 97.02, sitting a little below its 16-month high of 97.2 hit on Oct. 31. The dollar index has strengthened four weeks in row, gaining 0.37 percent last week. "The dollar index was firm all last week, bouncing back after the mid-term election results. Looking ahead, moves will be driven by the developments around the Italian budget and Brexit politics," said Sim Moh Siong, currency strategist at Bank of Singapore.
The dollar was trading against the Indian rupee at Rs 72.940, the greenback was available at 4.184 versus Malaysian ringgit, the US currency was at 6.963 in terms of the Chinese yuan.
In the second Asian trade, the dollar traded slightly below a 16-month high versus a basket of peers on Tuesday, benefiting from save-haven flows sparked by political uncertainties in Europe and fears of a global economic slowdown.
Investor confidence has been eroded by bitter trade tensions between the United States and China, fears of a no-deal Brexit, and a standoff between Rome and the European Union over Italy's deficit-deepening budget.
The dollar index, a gauge of its value versus six major peers, traded at 97.5, sitting shy of its 16-month high of 97.69 hit on Monday.
The dollar was trading against the Indian rupee at Rs 72.563, the greenback was available at 4.190 versus the Malaysian ringgit and the US currency was at 6.952 in terms of the Chinese yuan.
In the third Asian trade, the euro and sterling climbed higher on Wednesday as investor confidence rose on news Britain had struck a draft divorce deal with the European Union after more than a year of talks.
The dollar index, a gauge of its value versus six major peers, traded at 97.05 on Wednesday, down 0.26 percent. The index hit a 16-month high of 97.69 on Monday. The dollar was trading against the Indian rupee at Rs 72.083, the greenback was available at 4.190 in terms of the Malaysian ringgit and the US currency was at 6.948 versus the Chinese yuan.
In the fourth Asian trade, the dollar weakened on Thursday against the pound and euro, which rose after Britain's prime minister won cabinet approval for her draft Brexit plan, although concerns about whether the proposal can clear parliamentary hurdles capped broader gains.
The dollar index, a gauge of the currency's performance against six major peers, traded at 96.97, off a 16-month high hit on Monday. The recent correction in the dollar index has been due to rallies in the euro and sterling, which together constitute around 70 percent of the weight in the index.
The dollar was trading against the Indian rupee at Rs 72.130, the greenback was available at 4.189 versus the Malaysian ringgit and the US currency was at 6.940 in terms of the Chinese yuan.
In the final US trade, the dollar fell broadly on Friday in the wake of cautious comments from two US Federal Reserve officials about global economic growth, while sterling rose following losses tied to fears about a Brexit deal.
The greenback fell to one-week lows versus the euro and a two-week trough against the yen following comments from Fed Vice Chair Richard Clarida, who told CNBC television he saw some evidence of global growth cooling.
Clarida also noted key US short-term borrowing rates are close to neutral and said being at neutral "makes sense." Traders perceived his comments to mean the No. 2 Fed official may be open for the Fed to pause its rate-hike campaign sooner than previously thought.
Comments
Comments are closed.