The rupee managed to retain present levels against the dollar during the week, ended on January 12, 2019. The rupee showed firm trend in terms of the dollar for buying and selling at Rs 138.80 and Rs 139.30. The rupee, however, fell sharply versus the euro for buying and selling at Rs 158.20 and Rs 159.90.
OPEN MARKET RATES INTER-BANK MARKET: The rupee picked up six paisas versus the dollar for buying and selling at Rs 138.84 and Rs 138.86. Marketmen said that the national currency held the present levels due to balanced demand and supply of the dollar during the last week.
In the meantime, remittances from overseas Pakistanis jumped 10 percent to 10.718 billion dollars during the first half of fiscal year. Whereas, the country's foreign exchange reserves continued sliding trend owing to payments of high bills, they said.
Commenting on the next direction of the money market, they said that it is interest to note that how the rupee moves ahead of announcement of the Mini-budget? The Mini budget will be announced on 23rs of the current month.
OPEN MARKET RATES: On Monday, the rupee held it's present levels in terms of the dollar for buying and selling at Rs 138.80 and Rs 139.20, they said. While, the rupee lost 25 paisas versus the euro for buying and selling at Rs 157.50 and Rs 159.30, they said.
On Tuesday, the rupee picked up 20 paisas in terms of the dollar for buying and selling at Rs 138.60 and Rs 139.00. The rupee, however, lost 40 paisas versus the euro for buying and selling at Rs 157.00 and Rs 159.70.
On Wednesday, the local currency held the overnight levels in terms of the greenback for buying and selling at Rs 138.60 and Rs 139.00 respectively, they said. The rupee fell sharply against the euro for buying and selling at Rs 158.00 and Rs 159.60 respectively, they said.
On Thursday, the rupee shed 10 paisas in terms of dollar for buying at Rs 138.70 while it did not move any side for selling at Rs 139.00. The rupee was trading versus the euro for buying and selling at Rs 159.20 and Rs 160.80. On Friday,
On Friday, the rupee shed 10 paisas in terms of the dollar for buying at Rs 138.80 and it also fell by 20 paisas for selling atRs 139.20, they said. The rupee, however, gained 20 paisas versus the euro for buying and selling at Rs 159.00 and Rs 160.80.
On Saturday, the rupee did not move any side in terms of the dollar for buying at Rs 138.80, it however, fell by 10 paisas for selling at Rs 139.30. The rupee, however, gained 80 paisas versus the euro for buying and selling at Rs 158.20 and Rs 159.90.
INTER-BANK MARKET RATES: On Jan 7, the rupee showed little changes in relation to the dollar for buying and selling at Rs 138.90 and Rs 138.94. On jan 8, the rupee inched up versus the dollar for buying and selling at Rs 138.880 and Rs 138.90. On Jan 9, the rupee shed two paisas versus the dollar for buying and selling at Rs 138.90 and Rs 138.92.
On Jan 10, the rupee rose by four paisas versus the dollar for buying and selling at Rs 138.86 and Rs 138.88. On Jan 11, the rupee picked up two paisas versus the dollar for buying and selling at Rs 138.84 and Rs 138.86, they said.
OVERSEAS OUTLOOK FOR DOLLAR: In first Asian trade, the dollar slipped against peers on Monday, as traders placed bearish bets due to rising expectations that the Federal Reserve would put its policy tightening on pause in 2019.
Risk appetites were strong in Asian trade, thanks to China's aggressive monetary easing on Friday to address a sharp economic slowdown and to hopes that Washington and Beijing can strike a comprehensive trade deal.
The euro advanced 0.22 percent versus the dollar while the Australian dollar, often considered a barometer of global risk appetite, rose 0.2 pct and touched its highest level since Dec. 20.
Against the yen, the greenback fell 0.41 percent, fetching 108.09.
The dollar index, a gauge of its value versus six major peers, stood at 95.96 at 0406 GMT Monday, down 0.2 percent from an intraday high of 96.16.
The dollar war trading against the Indian rupee at Rs 69.355, the greenback was available at 4.108 in terms of the Malaysian ringgit and the US currency was at 6.847 versus the Chinese yuan.
In second Asian trade, the dollar fell versus other major currencies for a fourth straight session on Tuesday, as investors grew increasingly convinced the Federal Reserve will not raise interest rates this year amid uncertainties over the US economy.
The dollar index fell marginally to 95.64. It dipped 0.1 percent against the yen and eased marginally versus the euro and sterling in early Asian trade.
The dollar was trading against the Indian rupee at Rs 70.105, the greenback was available at 4.109 versus the Malaysian ringgit and the US currency was at 6.857 in terms of the Chinese yuan.
In the third Asian trade, commodity-linked currencies such as the Australian dollar and the Canadian dollar rose on Wednesday, helped by a rise in oil prices and growing optimism that China and the United States may be inching toward a trade deal.
The dollar was trading against the Indian rupee at Rs 70.365, the greenback was available at 4.113 versus the Malaysian ringgit and the US currency was at 6.838 in terms of the Chinese yuan.
In the fourth Asian trade, the dollar weakened versus major peers such as the euro and yen on Thursday due to growing expectations the Federal Reserve will pause its rate tightening cycle this year.
Minutes from the Fed's Dec. 18-19 meeting revealed that several policymakers were in favour of the US central bank keeping rates steady this year.
Broader market sentiment turned slightly cautious in Asian trade as markets waited for concrete evidence that progress is being made in US-China trade talks.
The dollar was trading against the Indian rupee at Rs 70.580, the greenback was available at 4.095 versus the Malaysian ringgit and the US currency was at 6.792 in terms of the Chinese yuan. In the final Asian trade, the dollar fell versus its major peers on Friday, as investors grew increasingly confident that the US Federal Reserve may hit the pause button on monetary tightening this year.
Fed Chairman Jerome Powell reiterated on Thursday the US central bank has the ability to be patient on monetary policy given that inflation remains stable. Markets are now pricing in no further rate hikes by the Fed this year.
Fed Vice Chair Richard Clarida also struck a dovish tone, underscoring the central bank's willingness to remain patient on the issue of raising rates.
The dollar index fell by 0.17 percent to 95.37. The index has fallen around 2.2 percent since mid-December on expectations that a slowdown in growth, both in the United States as well as globally, will restrict the Fed from raising rates in 2019.
The dollar was trading against the Indian rupee at Rs 70.420, the greenback was at 4.094 in terms of the Malaysian ringgit and the US currency was available at 6.749.
In the final US trade, the dollar rose against the euro on Friday, boosted by technical factors after the single currency hit key resistance levels, even as the greenback's outlook remained bleak amid cautious signals from the Federal Reserve about further rate hikes.
This week's Fed minutes, which underscored the US central bank's flexibility on monetary policy, triggered dollar selling that lifted the euro as high as $1.1581 and propelled it past a 100-day moving average for the first time in three months.
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