Moves both ways

Rates moved both ways on the money market during the week, ended on Jan 25, 2020.

INTER-BANK MARKET RATES: The rupee gained slightly versus the dollar for buying and selling at Rs 154.55 and Rs 154.57.

OPEN MARKET RATES: The rupee held the overnight levels in relation to the dollar for buying and selling at Rs 154.60 and Rs 154.90. The rupee picked up 20 paisas in terms of the euro for buying and selling at Rs 170.00 and Rs 171.50.

Commenting on the rupee's movement versus the dollar, marketmen said that as a whole, the rupee moved cautiously versus the dollar during the week. The rupee may not maintain it's firmness if demand for dollars increases by small investors.

INTER-BANK MARKET RATES: On Monday, the rupee shed four paisas versus the dollar for buying and selling at Rs 154.59 and Rs 154.61. On Tuesday, the rupee fell slightly versus the dollar for buying and selling at Rs 154.61 and Rs 154.62.

On Wednesday, the rupee appreciated by 10 paisas versus the dollar for buying and selling at Rs 154.51 and Rs 154.53. On Thursday, the rupee dropped by eight paisas versus the dollar for buying and selling at Rs 154.58 and Rs 154.62. On Friday, the rupee gained five paisas versus the dollar for buying and selling at Rs 154.55 and Rs 154.57.

OPEN MARKET RATES: On Jan 20, the rupee also dropped 10 paisas in relation to the dollar for buying and selling at Rs 154.50 and Rs 154.80. The rupee was inert versus the euro for buying at Rs 170.50 while the local currency was down by 30 paisas for selling and selling and Rs 172.30.

On Jan 21, the rupee followed same pattern versus the dollar, losing 10 paisas for buying and selling at Rs 154.60 and Rs 154.90. The rupee also shed 50 paisas versus the euro for buying at Rs 171.00 while the local currency was down by 30 paisas for selling and selling and Rs 172.50.

On Jan 22, while, the rupee sustained overnight levels in relation to the dollar for buying and selling at Rs 154.60 and Rs 154.90. The rupee picked up 20 paisas in terms of the euro for buying and selling at Rs 170.80 and Rs 172.30.

On Jan 23, the rupee, however, gained 10 paisas in relation to the dollar for buying and selling at Rs 154.50 and Rs 154.80. The rupee was unmoved in terms of the euro for buying and selling at Rs 170.80 and Rs 172.30.

On Jan 24, the rupee, however, shed 10 paisas in relation to the dollar for buying and selling at Rs 154.60 and Rs 154.90. The rupee was higher in terms of the euro for buying and selling at Rs 170.20 and Rs 171.70.

On Jan 25, the rupee held the overnight levels in relation to the dollar for buying and selling at Rs 154.60 and Rs 154.90. The rupee picked up 20 paisas in terms of the euro for buying and selling at Rs 170.00 and Rs 171.50.

OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the dollar began the week on a firm note on Monday as economic data pointed to strength right across the US economy, while optimism on the outlook for China supported Asian currencies.

The greenback held steady near a one-week high against the euro, at $1.1095, and just below an eight-month peak on the Japanese yen, at 110.17 yen per dollar. Against a basket of currencies it was flat.

China's yuan edged 0.2% higher to a fresh six-month top, while the Australian and New Zealand dollars also edged ahead.

Moves were slight and volumes thin as Chinese New Year approaches in Asia and with US markets closed for Martin Luther King day on Monday.

Figures on Friday showed US homebuilding surged to a 13-year high in December, with retail sales also on the rise and a gauge of manufacturing activity rebounding to its highest in eight months.

Futures pricing suggests nobody thinks the US Federal Reserve will cut rates when it meets at the end of the month.

The dollar was trading against the Indian rupee at Rs 71.080, the greenback was at 4.055 in terms of the Malaysian ringgit and the US currency was at 6.850 versus the Chinese yuan.

In the second Asian trade, the dollar began the week on a firm note on Monday as economic data pointed to strength right across the US economy, while optimism on the outlook for China supported Asian currencies.

The greenback held steady near a one-week high against the euro, at $1.1095, and just below an eight-month peak on the Japanese yen, at 110.17 yen per dollar. Against a basket of currencies it was flat.

China's yuan edged 0.2% higher to a fresh six-month top, while the Australian and New Zealand dollars also edged ahead.

Moves were slight and volumes thin as Chinese New Year approaches in Asia and with US markets closed for Martin Luther King day on Monday.

Figures on Friday showed US homebuilding surged to a 13-year high in December, with retail sales also on the rise and a gauge of manufacturing activity rebounding to its highest in eight months. Futures pricing suggests nobody thinks the US Federal Reserve will cut rates when it meets at the end of the month.

The dollar was trading against the Indian rupee at Rs 71.080, the greenback was at 4.055 in terms of the Malaysian ringgit and the US currency was at 6.850 versus the Chinese yuan.

In the third Asian trade, the yen was supported while the yuan was on the back foot on Wednesday as investors tried to assess the risk of the outbreak of a new coronavirus in China disrupting the country's economy and trade partners.

Against the yen, the US dollar slipped to 109.86 yen from Tuesday's high of 110.23. The euro stood at $1.1083, after dipping slightly on Monday.

The dollar was trading against the Indian rupee at Rs 71.190, the greenback was available at 4.072 in terms of the Malaysian ringgit and the US currency was at 6.901 versus the Chinese yuan.

In the fourth Asian trade, the safe-haven Japanese yen was firm and the Chinese yuan fragile on Thursday as traders kept a wary eye on the spread of a virus in China, while the ailing Australian dollar jumped after a surprise drop in unemployment.

The Japanese yen, seen as a haven by virtue of Japan's position as the world's largest creditor, rose 0.1% to a two week high of 109.65 per dollar as investors sought safety. The US dollar was otherwise steady, holding at about $1.1093 per euro and at 97.527 against a basket of currencies.

The dollar was trading against the Indian rupee at Rs 71.190, the greenback was at 4.064 versus the Malaysian rinngit and the US currency was 6.925 in terms of the Chinese yuan.

In the final Asian trade, the euro hovered near a seven-week low against the dollar on Friday after the European Central Bank was seen as more dovish than expected, while anxiety over China's coronavirus outbreak propped up the safe-haven yen.

The euro stood at $1.1055, touching a seven-week low of $1.1036 hit in US trade on Thursday after the ECB held interest rates steady and launched a broad review of its policy.

Purchasing Managers' Index (PMI) data from Germany and the euro zone due later on Friday is the next focus for the currency.

The common currency was also undermined by the coronavirus threat in China because some countries in the currency bloc, notably Germany, have big trade exposures to the Asian economic giant.

The dollar was trading against the Indian rupee at Rs 71.280 and the US currency was available at 4.063 in terms of the Malaysian ringgit.

In the final US trade, the dollar rose to a near eight-week high against the euro on Friday as lukewarm European PMI data added to the broader market conviction that European central bank policymakers will maintain a loose monetary policy for the near future.

Euro zone business activity remained lacklustre with the IHS Markit's Euro Zone Composite Flash Purchasing Managers' Index (PMI), seen as a good gauge of economic health, holding at 50.9 in January but missing the median prediction in a Reuters poll for 51.2.

That followed an earlier PMI from Germany, Europe's largest economy, which showed the private sector gained momentum. The euro was 0.21% lower against the greenback at $1.1029.