THE RUPEE: steady trend

Firm trend was seen on the money market last week (04 to 09, 2019) as the rupee managed to recover some lost ground in relation to the dollar. The rupee picked up 10 paisas in relation to the dollar for buying and selling at Rs 138.54 and Rs 138.56.
INTER-BANK MARKET RATES: OPEN MARKET RATES: The rupee gained 20 paisas versus the dollar for buying and selling at Rs 138.30 and Rs 138.80. The rupee also appreciated by 70 paisas in relation to the euro for buying and selling at Rs 155.30 at Rs 157.00. Demand for dollars was high despite this, the rupee managed to improve slightly during the week, marketmen observed.
If dollars' buying persisted, the rupee may lose ground versus the greenback but slightly, they said. According to the State Bank of Pakistan (SBP), country's foreign exchange reserves stood at 8.17 billion dollars.
INTER-BANK MARKET RATES: On March 4, the rupee gave up last week's firm trend in terms of the dollar, losing eight paisas for buying and selling at Rs 138.64 and Rs 138.66.
On March 5, the rupee drifted lower in terms of the dollar, shedding eight paisas for buying and selling at Rs 138.72 and Rs 138.75. On March 6, the rupee continued declining trend against the dollar, losing more 11 paisas for buying and selling at Rs 138.84 and Rs 138.86. On March 7, the rupee gained 11 paisas in relation to the dollar for buying and selling at Rs 138.61 and Rs 138.63. On March 8, the rupee rose by seven paisas in relation to the dollar for buying and selling at Rs 138.54 and Rs 138.56.
OPEN MARKET RATES: On Monday, the rupee, however, gained 20 paisas in relation to the dollar for buying and selling at Rs 138.50 and Rs 139.00. The rupee picked up 30 paisas against the euro for buying and selling at Rs 156.00 and Rs 157.80. On Tuesday the rupee maintained firm trend in relation to the dollar for buying and selling at Rs 138.50 and Rs 139.00. The rupee also followed the same pattern against the euro for buying at Rs 156.00, while it gained 50 paisas for selling at Rs 157.30, they said.
On Wednesday, the rupee did not budge any side in relation to the dollar for buying and selling at Rs 138.50 and Rs 139.00. The rupee was unchanged against the euro for buying at Rs 156.00, while it shed 50 paisas for selling at Rs 157.80.
On Thursday, the rupee was unchanged versus the dollar for buying and selling at Rs 138.50 and Rs 139.00. The rupee shed 30 paisas in relation to the euro for buying and selling at Rs 156.30 at Rs 158.10.
On Friday, the rupee did not move any side versus the dollar for buying and selling at Rs 138.50 and Rs 139.00. The rupee appreciated sharply in relation to the euro for buying and selling at Rs 155.00 at Rs 156.80.
On Saturday, the rupee picked up 20 paisas versus the dollar for buying and selling at Rs 138.30 and Rs 138.80. The rupee, however, depreciated in relation to the euro for buying and selling at Rs 155.30 at Rs 157.00.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the Australian dollar and the Chinese yuan rose on hopes Washington and Beijing were close to a trade deal after a bitter year-long tariff dispute.
Fuelling such expectations was a report from the Wall Street Journal on Sunday that said the United States and China could reach a formal agreement at a summit around March 27 given progress in talks between the two countries. The dollar was trading against the Malaysian ringgit at 4.071 and the greenback was available versus the Chinese yuan at 6.691.
In the second Asian trade, the dollar stood close to a two-week high against key peers on Tuesday, shored up by a resilient US economy and a flagging euro ahead of a European Central Bank policy meeting. Higher US bond yields kept the dollar well bid, and though rates were off overnight peaks, traders bet the greenback had more going for it than some of its peers.
The dollar index versus a group of six major currencies was 0.05 percent higher at 96.726 after going as high as 96.816 the previous day, its strongest since February 19. The dollar was trading against the Indian rupee at Rs 70.800, the greenback was at 4.076 versus the Malaysian ringgit and the US currency was at 6.702 in relation to the Chinese yuan.
In the third Asian trade, the dollar held gains against its peers on Wednesday, buoyed by better-than-expected data, while the Aussie took a knock after Australia's economic growth slowed last quarter. The Aussie also fell almost 0.8 percent against the Japanese yen. Its sharp losses spread to the New Zealand dollar, with the kiwi last down half a percent at $0.6763.
On Tuesday, the US dollar rose as unexpectedly strong data on US services industries and new home sales helped sooth some fears about the state of the world's top economy. The dollar index, which measures the greenback against a basket of six major peers, gained for the fifth straight session overnight, hitting a two-week high of 97.008. It last traded at 96.93 on Wednesday.
The dollar was trading against the Indian rupee at Rs 70.540, the greenback was at 4.087 versus the Malaysian ringgit and the US currency was available at 6.715 in terms of the Chinese yuan.
In the fourth Asian trade, major currencies mostly stuck to tight ranges on Thursday as traders focused their attention on the European Central Bank's (ECB) policy review later in the day, while the Australian and Canadian dollars struggled near two-month lows.
The dollar index, which measures the greenback against a basket of six key rivals, was steady at 96.852. The dollar index has gained 1.1 percent over the last six trading sessions after hitting its lowest level since early February on Thursday last week.
The dollar was trading against the Indian rupee at Rs 69.993, the greenback was at 4.082 in terms of the Malaysian ringgit and the US currency was available at 6.710 versus the Chinese yuan. In the final Asian trade, the euro struggled near a 21-month low against the dollar on Friday, hurt by a series of dovish signals from the European Central Bank, with the currency market bracing for further volatility ahead of US jobs data later in the day.
The single currency stood little changed at $1.1197 having tumbled 1 percent on Thursday to touch $1.1176, its lowest since June 2017. It has declined 1.5 percent so far this week. The dollar index against a basket of six major currencies was little changed at 97.622. The index soared 0.75 percent on Thursday to brush a near three-month peak of 97.71 and was headed for a weekly gain of 1.2 percent.
The dollar was available against the Indian rupee at Rs 69.995, the greenback was at 4.093 in terms of the Malaysian ringgit and US currency was at 6.724 versus the Chinese yuan.
In the final US trade, the dollar fell against most major currencies on Friday as data showed US employers hired far fewer workers than forecast in February, although the jobless rate fell and wages grew more than expected. The Swedish crown fell to a 16-year low, as Riksbank joined its central bank counterparts in Europe and Canada in adopting a cautious outlook.
The greenback reversed some of its biggest one-day gains in nearly seven months on Thursday as the European Central Bank and other overseas central banks hinted they might pump more stimulus, either by buying more assets or lowering interest rates to help their struggling economies.