The rupee improved sharply against the dollar on the money market during the week, ended on August 31, 2019. The rupee recovered sharply versus the dollar for buying and selling at Rs 156.85 and Rs 156.95.
INTER-BANK MARKET RATES: OPEN MARKET RATES: The rupee rose by 60 paisas in relation the dollar for buying and selling at Rs 156.50 and Rs 157.00. The rupee also gained sharply versus the euro for buying and selling at Rs 171.00 and Rs 173.00.
Marketmen said that the rupee recovered sharply against the dollar in process of trading activity. In fact, solid factor behind the sharp recovery is fall in buying of dollars, they said.
INTER-BANK MARKET RATES: On Monday, the rupee recovered an average of 21 paisas in relation to dollar for both buying and selling at Rs 157.33 and Rs 157.35. On Tuesday, the rupee gained 09 paisas versus the dollar for both buying and selling at Rs 157.24
and Rs 157.26. On Wednesday, the rupee lost four paisas versus the greenback for both buying and selling at Rs 157.28 and Rs 157.30 respectively, they said.
On Thursday, the rupee inched up in terms of the dollar for buying and selling at Rs 157.30 and Rs 157.32. On Friday, the rupee recovered sharply versus the dollar for buying and selling at Rs 156.85 and Rs 156.95.
OPEN MARKET RATES: On August 26, the rupee also gained 20 paisas versus the dollar for buying and selling at Rs 157.10 and Rs 157.60. The rupee picked up 20 paisas for buying at Rs 173.30 and 50 paisas for selling at Rs 175.00 against the euro.
On August 27, the rupee also moved up by 10 paisas against the dollar for buying and selling at Rs 157.00 and Rs 157.50 respectively, dealers said. In contrast the rupee lost 20 paisas for buying at Rs 173.50 and 50 paisas for selling at Rs 175.50 against the euro.
On August 28, the rupee also dropped by 10 paisas against the dollar for buying and selling at Rs 157.10 and Rs 157.60 respectively, dealers said. The rupee remained unchanged for buying at Rs 173.50 and but gained 30 paisas for selling at Rs 175.20 against the euro, they said.
On August 29, the rupee gained 10 paisas in relation to the dollar for buying and selling at Rs 157.00 and Rs 157.50, dealers said. The rupee was available against the euro for buying and selling at Rs 173.25 and Rs 175.25.
On August 30, the rupee gained sharply versus the dollar for buying and selling at Rs 156.50 and Rs 157.00. On August 31, the rupee was unchanged in relation the dollar for buying and selling at Rs 156.50 and Rs 157.00. The rupee picked up steeply versus the euro for buying and selling at Rs 171.00 and Rs 173.00.
OVERSEAS OUTLOOK FOR THE DOLLAR: In the first Asian trade, - China's yuan hit an 11-year low in onshore trade and tumbled to a record low in offshore trade after a sharp re-escalation in the US-China trade war whacked investor confidence and darkened the global economic outlook.
The yen, often bought as a safe haven, briefly rose to the highest against the dollar since a January flash crash. But those gains were erased as Japanese importers sold yen, which remained firmer against other currencies, a sign of waning risk appetite.
The dollar was trading against the Indian rupee at Rs 72.090, the US currency was at 4.205 versus the Malaysian ringgit and the greenback was available at 7.144 in terms of the Chinese yuan.
In the second Asian trade, the yen rose on Tuesday as some investors tempered their optimism about the chances for a quick resolution to the U.S.-China trade war, which boosted so-called risk-off trades.
Global markets have been whipsawed by dramatic twists in the trade dispute this month. U.S. President Donald Trump on Monday flagged the possibility of a trade deal with China, days after both sides announced new tariffs.
The dollar was trading against the Indian rupee at Rs 71.805, the US currency was at 4.206 versus the Malaysian ringgit and the greenback was available at 7.161 in terms of the Chinese yuan.
In the third Asian trade, the yen stood tall against its peers on Wednesday, with an inversion of the US yield curve stoking recession worries and keeping the safe-haven Japanese currency in demand.
"It remains to be seen how accurately the US yield curve inversion reflects economic conditions. But it does prompt speculators to reduce dollar positions and increase their bets on the yen," said Mitsuo Imaizumi, chief forex strategist at Daiwa Securities.
The dollar was trading against the Indian rupee at Rs 71.613, the US currency was at 4.209 versus the Malaysian ringgit and the greenback was available at 7.158 in terms of the Chinese yuan.
In the fourth Asian trade, the dollar held gains against the safe-haven yen on Thursday as ebbing recession worries soothed markets after earlier volatility although the pound nursed its losses as investors became increasingly worried about a hard Brexit.
The dollar index, which measures the greenback against a basket of six major currencies, rose 0.16% to 98.189.
The dollar was trading against the Indian rupee at Rs 72.045, the greenback was at 4.223 versus the Chinese yuan and the US currency was at 7.168 in relation to the Chinese yuan.
In the final US trade, the euro fell below $1.10 on Friday to its weakest since May 2017 as a multi-day downward shift in the single currency intensified in afternoon trade.
Traders had varied explanations for the drop, including that month-end rebalancing of portfolios heightened an existing bias. The longer-term trend, which has seen the euro fall 0.90% in August, has been driven by an economic slowdown in Europe among other factors.
"We had a quick 50-odd point drop, which seems to be month-end related. Clearly the euro has been quite soft for some time. We touched below $1.10 earlier in August and we've struggled really to rebound from that point.
The underlying softness that we've seen persist in the past month seems very much intact," said Shaun Osborne, chief foreign exchange strategist at Scotia Capital.
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