The rupee dropped about Rs 7 or seven percent against the dollar on the money market during the week, ended on May 18, 2019. OPEN MARKET RATES: The rupee fell sharply in terms of the dollar for buying and selling at Rs 149.00 and Rs 150.00. The rupee also fell sharply against the euro for buying and selling at Rs 165.00 and Rs 167.80.
INTER-BANK MARKET RATES: The rupee dropped about Rs 8 in relation to the dollar for buying and selling at Rs 148.50 and Rs 149.00. Last week, the rupee dropped sharply against the dollar in both the open and inter-bank market, dealers said.
They said that just after the announcement of the International Monetary Fund (IMF) and government bail out deal, the dollar started showing it's muscle versus the rupee, they said.
The dollar easily trading against the rupee at Rs 152 and Rs 153, marketmen said and adding that it's not easy to predict about the new direction of currency market. As a result of soaring dollar rate, the traders and businessmen are facing a kind of uncertainty, they said. The rupee depreciation will increase the cost of doing business and affect the sector, adversely, they added.
Monetary policy will be announced next week and a likely increase in interest rate cannot be rejected, they added. Rise in interest and energy rates may be harmful for the business, because it would increase the cost of production, which will discourage doing business in the country. In the meantime, it is most likely that weak rupee may boost the export of textile products, they said.
OPEN MARKET RATES: On Monday, the rupee lost Re one in terms of the dollar for buying and selling at Rs 143.00 and Rs 143.50. The rupee dropped by 80 paisas against the euro for buying and selling at Rs 159.60 and Rs 161.40.
On Tuesday, the rupee dropped 20 paisas in terms of the dollar for buying and selling at Rs 143.20 while it lost 45 paisas for selling at Rs 143.95, they said. The rupee fell sharply against the euro for buying and selling at Rs 160.50 and Rs 162.30, they said. On Wednesday, the rupee lost 30 paisas in terms of the dollar for buying at Rs 143.50 and while it held it's overnight level for selling at Rs 143.95, they said. The rupee shed 50 paisas against the euro for buying and selling at Rs 161.00 and Rs 162.80, they said.
On Thursday, the rupee also lost Rs 2.50 in terms of the dollar for buying and selling at Rs 146.00 and Rs 147.50, they said. The rupee shed 50 paisas against the euro for buying and selling at Rs 161.00 and Rs 162.80, they said.
On Friday, the rupee also lost Rs 2.50 in terms of the dollar for buying at Rs 148.50 while the local currency shed Rs 2.00 for selling at Rs 149.50. The rupee fell sharply against the euro for buying and selling at Rs 165.50 and Rs 168.80.
On Saturday, the rupee shed 50 paisas in terms of the dollar for buying and selling at Rs 149.00 and Rs 150.00. The rupee, however, picked up 50 paisas against the euro for buying and selling at Rs 165.00 and Rs 167.80.
INTER-BANK MARKET RATES: On May 13, the rupee showed slight changes in relation to the dollar for buying and selling at Rs 141.38 and Rs 141.40. On May 14, the rupee showed slight changes in relation to the dollar for buying and selling at Rs 141.39 and Rs 141.40.
On May 15, the rupee almost held the overnight levels in relation to the dollar for buying and selling at Rs 141.39 and Rs 141.40. On May 16, the rupee dropped over Rs 4 in relation to the dollar for buying and selling at Rs 145.50 and Rs 146.00.
On May 17, the rupee dropped about Rs 3 in relation to the dollar for buying and selling at Rs 148.50 and Rs 149.00.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the safe-haven yen firmed slightly and the Chinese yuan and Australian dollar dipped on Monday, after the latest escalation in the trade war between the United States and China.
The world's two biggest economies appeared at a deadlock over trade negotiations on Sunday as Washington demanded promises of concrete changes to Chinese law and Beijing said it would not swallow any "bitter fruit" that harmed its interests.
"Dollar/yen's range has definitely shifted lower. But it is difficult to see the dollar fall back towards its lows probed against the yen at the start of the year, given how relatively firm recent US economic data has been," said Koji Fukaya, director at FPG Securities in Tokyo, referring to the greenback's brief "flash crash" below 105 yen early in January.
The dollar was trading against the Indian rupee at Rs 70.210, the greenback was at 4.163 in terms of the Malaysian ringgit and the US currency was available at 6.8580 versus the Chinese yuan.
In the second Asian trade, the Australian and New Zealand dollars were stuck near multi-month lows on Tuesday as China's reprisal for US tariffs shook markets globally and stoked speculation about interest rate cuts at home. The Aussie dollar was pinned at $0.6952, having sunk 0.8 percent on Monday to as deep as $0.6941, the lowest since the flash crash of early January. The last time the currency spent more than a day down at these levels was in early 2016.
The kiwi regained just a little ground to $0.6586, but remained uncomfortably close to its recent six-month trough of $0.6505. Both dropped on the safe-haven Japanese yen, with the Aussie shedding 1.4 percent overnight to its lowest since January at 75.70.
The dollar was trading against the Indian rupee at Rs 70.440, the greenback was at 4.169 versus the Malaysian ringgit and the US currency was available at 6.878 versus the Chinese yuan.
In the third Asian trade, the dollar held steady while the Australian dollar hovered near a more than four-month low on Wednesday, as traders awaited European and US data for clues on whether the worst is over for the global economy.
The foreign exchange market showed little reaction to worse-than-expected growth in Chinese industrial output and retail sales for April that underlined the need for Beijing to roll out more stimulus measures to support the world's second-largest economy.
In the fourth Asian trade, the euro was buoyant on Thursday as trade concerns eased on expectations that US President Donald Trump will delay implementing tariffs on imported cars.
Trump administration officials told Reuters on Wednesday that the president is expected to put off a decision on imposing tariffs on imported cars and parts by up to six months, for now preventing a further increase in transatlantic trade tensions.
The euro was 0.05% higher at $1.1207, having bounced overnight from a one-week low of $1.1178. The single currency was initially hit as Italy's Deputy Prime Minister Matteo Salvini criticized European Union rules for the second day.
The dollar index against a basket of six major currencies was nearly flat at 97.542 after posting modest gains the previous day.
The dollar was trading against the Indian rupee at Rs 70.225, the greenback was at 4.155 versus the Malaysian ringgit and the US currency was at 6.879in terms of the Chinese yuan.
In the final Asian trade, the dollar held near a two-week high against its peers on Friday, supported by strong US economic data and a bounce in Treasury yields.
The dollar index versus a basket of six major currencies stood at 97.836 after reaching 97.882 on Thursday, its highest since May 3.
The greenback reached the two-week peak on robust US housing data and a weekly jobless claims report which pointed to sustained labour market strength in the world's biggest economy.
The US currency also drew strength as its counterparts such as the euro and pound were dogged by bearish factors. The dollar was available against the Indian rupee at Rs 70.195, the greenback was at 4.173 in terms of the Malaysian ringgit and the US currency was at 6.909 in relation to the Chinese yuan.
In the final US trade, the dollar rose on Friday as concern about next week's European parliamentary elections dented demand for the euro, while the British pound dropped to a four-month low on worries about Britain's exit from the European Union.
The dollar has been favoured as a safe-haven currency even as the trade war between the United States and China escalates.
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