The rupee managed to recover more ground against the dollar on the money market during the week, ended on Jan 18, 2020. Marketmen said that dollars' smooth supply helped the rupee to recover more ground, so it looks that the rupee may stay firm in the near future. If dollars' demand goes up, the rupee may not continue it's firmness in days to come, they said.
INTER-BANK MARKET RATES: The rupee rose by 30 paisas versus the dollar for buying and selling at Rs 154.55 and Rs 154.60.
OPEN MARKET RATES: The rupee gained 30 paisas in relation to the dollar for buying and selling at Rs 154.40 and Rs 154.70. The rupee also appreciated sharply in terms of the euro for buying and selling at Rs 170.50 and Rs 172.00.
INTER-BANK MARKET RATES: On Monday, the rupee shed five paisas versus the dollar for buying and selling at Rs 154.85 and Rs 154.87. On Tuesday, the rupee did not move any side versus the dollar for buying and selling at Rs 154.85 and Rs 154.87.
On Wednesday, the rupee picked up nine paisas versus the dollar for buying and selling at Rs 154.76 and Rs 154.79. On Thursday, the rupee picked up 10 paisas versus the dollar for buying and selling at Rs 154.66 and Rs 154.68. On Friday, the rupee rose by nearly 10 paisas versus the dollar for buying and selling at Rs 154.55 and Rs 154.60, they said.
OPEN MARKET RATES: On Jan 13, the rupee managed to gain 10 paisas versus the dollar for buying at Rs 154.70 and it also picked up 20 paisas for selling Rs 155.00, they said. The rupee, however, dropped 30 paisas in relation to the euro for buying and selling at Rs 171.80 and Rs 173.30. On Jan 14, the rupee managed to hold overnight levels versus the dollar for buying and selling at Rs 154.70 and Rs 155.00. While rupee shed 20 paisas in relation to the euro for buying and selling at Rs 172.00 and Rs 173.50.
On Jan 15, the rupee maintained overnight levels in relation to the dollar for buying and selling at Rs 154.70 and Rs 155.00. While rupee did not move any side in terms of the euro for buying and selling at Rs 172.00 and Rs 173.50. On Jan 16, the rupee gained 10 paisas in relation to the dollar for buying and selling at Rs 154.60 and Rs 154.90. While rupee did not show any change in terms of the euro for buying and selling at Rs 172.00 and Rs 173.50.
On Jan 17, the rupee picked up 10 paisas in relation to the dollar for buying and selling at Rs 154.50 and Rs 154.80. The rupee also gained 80 in terms of the euro for buying and selling at Rs 171.80 and Rs 172.70.
On Jan 18, the rupee picked up 10 paisas in relation to the dollar for buying and selling at Rs 154.40 and Rs 154.70. The rupee also appreciated sharply in terms of the euro for buying and selling at Rs 170.50 and Rs 172.00.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the dollar began the week supported by optimism on the Sino-US trade front, while the pound wobbled lower after weekend hints at an interest rate cut from a Bank of England policymaker. A US-China trade deal is due to be signed at the White House on Wednesday, though talks on a phase two package are likely to drag on for months.
The imminent deal, ending an 18-month trade dispute, has investors hoping for a revival in global growth. That offered support to trade-exposed Asian currencies such as China's yuan and the Australian dollar, as well as the greenback. The mood pushed the dollar 0.1% firmer against the safe-haven Japanese yen and Swiss franc early in Asian trading hours. A greenback bought 109.56 yen and 0.9731 francs.
Against a basket of currencies the dollar edged higher to 97.410 and the Chinese yuan held at a five-month high in offshore trade. The dollar was trading against the Indian rupee at Rs 70.783, the greenback was at 4.063 in terms of the Malaysian ringgit and the US currency was available at 6.899 versus the Chinese yuan.
In the second Asian trade, the yen plumbed eight-month lows while China's yuan climbed to its highest level since July on Tuesday, as the US Treasury Department reversed its decision in August to designate China as a currency manipulator. The announcement came as Chinese Vice Premier Liu He arrived in Washington ahead of Wednesday's signing with US President Donald Trump of a preliminary trade agreement aimed at easing tensions between the two countries.
"Washington's decision to lift its designation of currency manipulator on China has added to the positive mood that has been already in place ahead of the signing of the trade deal," said Minori Uchida, chief currency strategist at MUFG Bank.
People familiar with the negotiations said that although the manipulator designation had no real consequences for Beijing, its removal was an important symbol of goodwill for Chinese officials. The dollar rose as much as 0.25% to 110.22 yen, its highest since late May against the safe-haven Japanese currency. It last stood at 110.04 yen, capped at a technical resistance from Bollinger band around 110.22.
China's yuan climbed to its highest level since July on Tuesday and the Japanese yen plumbed eight-month lows as the US Treasury Department reversed its decision in August to designate China as a currency manipulator. In the third Asian trade, the safe-haven yen held firm and riskier Asian currencies softened a little on Wednesday, as currency investors awaited the signing of the US-China trade deal with trepidation.
The formal agreement is aimed at drawing a line underneath 18 months of tit-for-tat tariff hikes that have hurt global growth.
But hopes that it may herald warmer relations between the world's top two economies were dented late Tuesday when US Treasury Secretary Steven Mnuchin said that current tariffs on Chinese goods would stay, pending further talks. That toppled China's trade-sensitive yuan from a six-month peak and lifted the yen from a seven-month trough. But moves in morning trade were slight as markets wait to see the deal inked.
The dollar was trading against the Indian rupee at Rs 70.880, the greenback was at 4.077 versus the Malaysian ringgit and the US currency was available at 6.895 in terms of the Chinese yuan.
In the fourth Asian trade, the dollar gave a little ground to riskier Asian currencies on Thursday, as investors hoped the Sino-US trade deal could herald warmer relations between the world's two biggest economies and help to revive global growth. Beijing and Washington touted the Phase 1 deal, signed overnight at the White House, as a step forward.
US Vice President Mike Pence said further Phase 2 discussions had already begun as negotiators work to resolve differences. That helped the trade-exposed Australian and New Zealand dollars to book modest gains, while the safe-haven Japanese yen softened slightly. The dollar was trading against the Indian rupee at Rs 70.810, the greenback was at 4.067 in terms of the Malaysian ringgit and the US currency was available at 6.885 versus the Chinese yuan.
In the final Asian trade, the dollar gained on Friday as US data suggested the world's largest economy maintained a moderate growth pace at the end of 2019, reaching an eight-month peak against the safe-haven yen.
US retail sales increased for a third straight month in December and the number of Americans filing claims for unemployment benefits dropped for a fifth straight week last week, indicating the labour market remained strong.
The dollar index, which tracks the greenback's strength against a basket of six major currencies, last stood at 97.308, up 0.1% on the day. The euro barely moved at $1.1137.
The dollar was trading against the Indian rupee at Rs 71.005, the greenback was at 4.061 versus the Malaysian ringgit and the US currency was available at 6.870 in terms of the Chinese yuan.
In the final US trade, the safe-haven Japanese yen weakened on Friday as record high stocks showed stronger risk appetite, while the greenback gained against the euro after data on Thursday showed solid US economic momentum.
US stock indexes were driven higher by optimism over corporate earnings, upbeat economic data and indications of resilience in China's economy. Data on Friday showed that China's economy ended the year on a firmer note, even as economic growth cooled to its weakest in nearly 30 years. The yen rose as high as 110.28, the highest since May, before falling back to 110.10. The offshore Chinese yuan also strengthened as far as 6.8567, the strongest since July. The euro was last down 0.32% at $1.1099.
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