Steady trend

The rupee sustained stable trend in terms of the dollar on the money market during the week, ended on Jan 11, 2020. The rupee gained modestly versus the dollar for buying and selling at Rs 154.80 and Rs 154.82.

INTER-BANK MARKET RATES: OPEN MARKET RATES: The rupee maintained a firm posture versus the dollar for buying and selling at Rs 154.80 and Rs 155.20. The rupee showed no change in relation to the euro for buying and selling at Rs 171.50 and Rs 173.00.

According to the report, the State Bank of Pakistan (SBP) country's foreign exchange reserves went up to 11.5 billion dollar. Overseas Pakistani workers remitted $11,394.91 million in the first half (July to Dec) of FY20, showing a growth of 3.31 percent compared with $11,030.01 million received during the same period in the preceding year.

INTER-BANK MARKET RATES: On Jan 6, the rupee shed five paisas against the dollar for buying and selling at Rs 154.94 and Rs 154.96. On Jan 7, the rupee shed six paisas against the dollar for buying and selling at Rs 155.01 and Rs 155.02. On Jan 8, the rupee slipped by five paisas against the dollar for buying and selling at Rs 155.06 and Rs 155.08. On Jan 9, the rupee gained 18 paisas against the dollar for buying and selling at Rs 154.88 and Rs 154.90. On Jan 10, the rupee picked more eight paisas versus the dollar for buying and selling at Rs 154.80 and Rs 154.82.

OPEN MARKET RATES: On Monday, the rupee dropped 10 paisas in term of the dollar for buying and selling at Rs 155.00 and Rs 155.30 respectively. The rupee also fell sharply versus the euro, losing 90 paisas for buying and selling at Rs 172.60 and R174.30.

On Tuesday, the rupee was unchanged versus the dollar for buying and selling at Rs 155.00 and Rs 155.30. The rupee was available in relation to the euro for buying and selling at Rs 172.70 and Rs 174.20 respectively.

On Wednesday, the rupee lost 40 paisas versus the dollar for buying at Rs 155.40 and it also fell by 50 paisas for selling Rs 155.80, they said. The rupee, however, gained 20 paisas in relation to the euro for buying and selling at Rs 172.50 and Rs 174.20, they said.

On Thursday, the rupee also picked up 10 paisas versus the dollar for buying and selling at Rs 155.30 and Rs 155.70, they said. The rupee also rose by 50 paisas in relation to the euro for buying and selling at Rs 172.00 and Rs 173.80. On Friday, the rupee maintained rising trend, gaining 30 paisas versus the dollar for buying and selling at Rs 155.00 and Rs 155.40. The rupee also rose by 50 paisas in relation to the euro for buying and selling at Rs 171.50 and Rs 173.00, respectively, they said.

On Saturday, the rupee managed to gain 20 paisas versus the dollar for buying and selling at Rs 154.80 and Rs 155.20. The rupee showed no change in relation to the euro for buying and selling at Rs 171.50 and Rs 173.00.

OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the safe-haven yen touched a three-month high on Monday and gold jumped as investors fretted that the killing of Iran's most prominent military commander by the United States could trigger a broader Middle East conflict.

US President Donald Trump warned of a "major retaliation" if Iran hit back, while Iran's replacement commander vowed to expel the United States from the region.

The yen, regarded as a haven in times of market turmoil by virtue of Japan's status as the world's biggest creditor, rose as much as 0.3% to 107.82 per dollar during the trade, its strongest since October 2019. It handed back most of those gains later though, even as gold gained and stocks slid.

The dollar was trading against the Indian rupee at Rs 72.020, the greenback was available at 4.107 in terms of the Malaysian ringgit and the US currency was at 6.971 versus the Chinese yuan.

In the second Asian trade, the Swiss franc held gains against the dollar on Tuesday as traders sought save-havens amid heightened anxiety about potential Iranian retaliation to a US drone strike that killed its most prominent military commander.

The yen, another safe-haven currency, pulled back from a three-month high versus the dollar, but sentiment remains fragile due to the increasing worries about armed conflict between the United States and Iran.

The dollar was trading against the Indian rupee at Rs 71.713, the greenback was available at 4.094 in terms of the Malaysian ringgit and the US currency was at 6.954 versus the Chinese yuan.

In the third Asian trade, currencies turned volatile on Wednesday as the safe-haven yen first jumped on news of Iranian missile strikes on bases hosting US troops in Iraq, before retreating as investors wagered it would not trigger a wider conflict in the region.

More than a dozen ballistic missiles shot through the night from Iranian territory toward the two Iraqi military bases, the US military said.

Iran's Islamic Revolutionary Guards Corps said they fired them to retaliate for last week's killing of commander Qassem Soleimani, according to a statement on state TV.

That sent the yen to a three-month high, before settling back as the absence of immediate reports of casualties steadied nerves. Twitter posts from both sides playing down the prospect of further escalation also helped calm the currency market.

The dollar was trading against the Indian rupee at Rs 71.990, the greenback was at 4.103 in terms of the Malaysian ringgit and the US currency was available at 6.944 versus the Chinese yuan.

In the fourth Asian trade, the Japanese yen and Swiss franc retreated on Thursday as the United States and Iran backed away from further conflict, with markets flipping back to the old habit of more risk-taking on hope of a US-China trade deal.

US President Donald Trump responded overnight to an Iranian attack on US forces with sanctions, not violence. Iran offered no immediate signal it would retaliate further to a Jan. 3 US strike that killed one of its senior military commanders.

The yen, regarded as a safe haven in times of geopolitical turmoil because of its deep liquidity as well as Japan's current account surplus, quickly reversed its gains made after Wednesday's missile strike.

The dollar traded at 109.19 yen, jumping back sharply from a three-month low of 107.65 yen touched on Wednesday.

The Swiss franc, another safe-haven currency, followed a similar path.

The dollar rose to 0.9740 franc from Wednesday's low of 0.96655 while the euro firmed to 1.0828 franc from 21-month low of 1.07825 set on Wednesday.

The dollar was available against the Indian rupee at Rs 71.405, the greenback was at 4.087 in terms of the Malaysian ringgit and the US currency was at 6.930 versus the Chinese yuan.

According to reports, the dollar fetched 109.57 yen in Asian trade, against 109.51 yen in New York late Thursday.

In the final US trade, the US dollar fell from four-week highs against the safe-haven yen and slid versus the Swiss franc on Friday as investors fretted over possible renewed geopolitical tensions between the United States and Iran.

The yen and Swiss franc had fallen from highs hit last week after the United States and Iran, in comments earlier this week, moved away from an all-out conflict.

But concerns grew after the United States imposed more sanctions on Iran on Friday in response to its retaliatory missile attack on US forces in Iraq and vowed to tighten the screws further on the Iranian economy if Tehran continued to engage in what it described as terrorist acts.

US Secretary of State Mike Pompeo, in an appearance at the White House, said he had "no doubt" that Iran had full intention of killing US forces in a missile attack on a base in Iraq in retaliation for the US killing of Iranian commander Qassem Soleimani.