The rupee posted fresh gains against the dollar on the money market during the ended on Feb 2, 2019. The rupee appreciated by 52 paisas in relation to the dollar for buying and selling at Rs 138.22 and Rs 138.24.
INTER-BANK MARKET RATES: OPEN MARKET RATES: The rupee managed to gain 50 paisas against the dollar for buying and selling at Rs 138.00 and Rs 138.50. While, the rupee rose by 10 paisas in terms of the euro for buying and selling at Rs 157.50 and Rs 159.00.
The rupee maintained rising trend against the dollar on the back of easy flow of dollars during the week under review, marketmen observed.
Commenting on the rupee's slight recovery versus the dollar, money experts said that increase in the country's foreign exchange reserves is a positive development because this factor will help the national currency to move further up. Whereas, 0.25 basis points rise in the State Bank of Pakistan (SBP) policy rate, will increase cost of doing business or cost of production.
The SBP raised its key policy rate by 25 basis points to 10.25 percent last Thursday in the face of high fiscal and current account deficits and continuing inflation pressure.
Furthermore, just after the announcement, the business community urged the central bank to bring down the mark up rate to ensure cheap running capital for the country's industries.
INTER-BANK MARKET RATES: On Monday, the rupee inched up by one paisa in terms of the dollar for buying at Rs 138.74 and it also gained two paisas for selling at Rs 138.76. On Tuesday, the rupee maintained overnight rising trend in terms of the dollar, picking up 11 paisas for buying and selling at Rs 138.63 and Rs 138.67.
On Wednesday, the rupee extended overnight gains in terms of the dollar, picking up eight paisas for buying at Rs 138.55 and it also rose by 13 paisas for selling Rs 138.60. On Thursday, the rupee recovered more ground in terms of the dollar, picking up 32 paisas for buying at Rs 138.23 and it also rose by 35 paisas for selling Rs 138.25. On Friday, the rupee inched up by one paisa in relation to the dollar for buying and selling at Rs 138.22 and Rs 138.24.
OPEN MARKET RATES: On Jan 28, the rupee rose by 10 paisas in terms of the dollar for buying at Rs 138.50 while it did not show any change for selling at Rs 139.00. The rupee, however, lost 30 paisas against the euro for buying at Rs 157.60 and it also shed 60 paisas for selling at Rs 159.10.
On Jan 29, the rupee also gained 20 paisas in terms of the dollar for buying and selling at Rs 138.30 and Rs 138.80. While, the rupee stayed put against the euro for buying and selling at Rs 157.60 and Rs 159.10.
On 30, the rupee also appreciated by 10 paisas against the dollar for buying and selling at Rs 138.20 and Rs 138.70. While, the rupee was up by 10 paisas against the euro for buying and selling at Rs 157.50 and Rs 159.00.
On Jan 31, the rupee also appreciated by 20 paisas against the dollar for buying and selling at Rs 138.00 and Rs 138.50. While, the rupee was down by 50 paisas in relation to the euro for buying and selling at Rs 158.00 and Rs 159.50.
On Feb 1st, the rupee was unchanged against the dollar for buying and selling at Rs 138.00 and Rs 138.50. While, the rupee gained 25 paisas in relation to the euro for buying and selling at Rs 157.75 and Rs 159.25.
On Saturday, the rupee showed no change against the dollar for buying and selling at Rs 138.00 and Rs 138.50. While, the rupee rose by 25 paisas in relation to the euro for buying and selling at Rs 157.50 and Rs 159.00.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the dollar was down on Monday, not far off more than one-week lows as financial markets shifted their attention to this week's Federal Reserve rates-setting review with traders wagering policymakers would signal a pause to their tightening cycle.
The dollar index, a gauge of its value versus six major peers was marginally lower at 95.73.
The dollar was trading against the Indian rupee at Rs 71.080, the greenback was at 4.108 in terms of the Malaysian ringgit and the US currency was at available at 6.731 versus the Chinese yuan.
In the second Asian trade, the safe-haven yen firmed on Tuesday after the US Justice Department charged China's Huawei Technologies Co Ltd with fraud, racketing up US-Sino trade tensions and prompting investors to ditch risky assets.
The dollar index, a gauge of its value versus six major peers, was flat at 95.72 and holding close to a two-week low. The dollar was trading against the Indian rupee at Rs 71.110, the greenback was at 4.111 versus the Malaysian ringgit and the US currency was available at 6.744 in relation to the Chinese yuan.
In the third Asian trade, the pound tried to find its footing on Wednesday after sliding on fresh concerns about the possibility of a "no-deal" Brexit, while the dollar eased ahead of the Federal Reserve's policy decision.
Markets were also focused on US-Sino trade talks in Washington on Wednesday and Thursday, while the closely-watched US jobs report will be released on Friday.
The dollar index against a basket of six major currencies dipped 0.1 percent to 95.732 following a slip to a two-week low of 95.620 overnight after US.
The dollar was trading against the Indian rupee at Rs 71.255, the greenback was available at 4.107 in terms of the Malaysian ringgit and the US currency was at 6.715 versus the Chinese yuan.
In the fourth Asian trade, the dollar extended losses on Thursday after the Federal Reserve sent the clearest signal yet that its three-year drive to tighten monetary policy is close to an end in the face of rising pressure on the economy from slowing global growth.
The dollar index, a gauge of its value versus six major peers, was down slightly at 95.37 and near a 3-week low, after falling 0.43 percent overnight.
The dollar was trading against the Indian rupee at Rs 71.040, the greenback was at 4.084 versus the Malaysian ringgit and the US currency was at available at 6.698 in relation to the Chinese yuan. In the final Asian trade, the Australian and New Zealand dollars held steady versus the greenback on Friday, as the Federal Reserve's more dovish stance and improved prospects for a US-Sino trade deal boosted investor risk appetite.
The dollar index, a gauge of its strength versus six major peers was relatively unchanged at 95.55. The index is set to end the week in the red, after losing 0.6 percent of its value last week.
The dollar was available against the Indian rupee at Rs 71.125 and the US currency was trading at 6.728 in terms of the Chinese yuan. In the final US trade, the dollar slipped on Friday after the US non-farm payrolls report for January showed very little wage inflation, affirming the Federal Reserve's patient stance on further interest rate increases.
The greenback did shoot higher after the release of strong job gains, but quickly got back to its levels before the data, with analysts citing the average hourly earnings figure, which rose just 0.1 percent, compared with expectations for a 0.3 percent. Beyond the headline jobs gains, the dollar has become more sensitive to wage inflation over the last year. The report showed the US economy created 304,000 new jobs, the highest in 11 months, superseding forecasts for 165,000 jobs. The unemployment rate, however, rose to a seven-month peak of 4 percent.
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