Mixed patterns

The rupee showed modest changes against the dollar on the money market during the week, ended on March 20, 2020. The rupee shed 10 paisas versus the dollar for buying and selling at Rs 158.50 and Rs 158.60.
INTER-BANK MARKET RATES: OPEN MARKET RATES: The rupee depicted slight variation in terms of the greenback for buying and selling at Rs 158.00 and Rs 158.50. The rupee gained sharply against the euro for buying and selling at Rs 168.50 and Rs 172.50.
Commenting on the latest situation, Forex Association of Pakistan (FAP), President, Malik Bostan said that recently, we held an urgent meeting with State Bank of Pakistan (SBP) and requested the central bank to make a mechanism to tackle the situation if any flights suspended from Pakistan to Dubai, in wake of Coronavirus Disease 2019 (COVID-19).
We also plead the SBP to ask all commercial banks to take cautious but effective measures to deal with the worse situation. Reports confirmed that Dubai-bound flights suspended on Thursday. The FAP President also plead the SBP to direct all commercial banks to purchase foreign currencies, including the US dollar from the money market, which will help in tackling the crisis like situation in the short run.
Whereas, the SBP cut its key interest rate by 75 bps to 12.50 percent, the first reduction in four years, citing a declining inflationary pressure. Some money experts said that under the circumstances, the move may not prove very much fruitful.
INTER-BANK MARKET RATES: On Monday, the rupee gained 65 paisas versus the dollar for buying and selling at Rs 158.40 and Rs 158.50. On Tuesday, the rupee shed 10 paisas versus the dollar for buying at Rs 158.40 while it did not any side for selling at Rs 158.50. On Wednesday, the rupee held it's levels versus the dollar for buying and selling at Rs 158.40 and Rs 158.50. On Thursday, the rupee was down by 15 paisas versus the dollar for buying and selling at Rs 158.55 and Rs 158.65. On Friday, the rupee recovered five paisas versus the dollar for buying and selling at Rs 158.50 and Rs 158.60.
OPEN MARKET RATES: On March 16, the rupee, however, lost Re one in terms of the greenback for buying at Rs 157.00 and it also lost Rs.1.50 for selling at Rs 158.50. The rupee was trading against the euro for buying and selling at Rs 171.00 and Rs 175.00.
On March 17, the rupee lost 50 paisas in terms of the greenback for buying at Rs 157.50 while it held the overnight level for selling at Rs 158.50. The rupee shed 50 paisas against the euro for buying and selling at Rs 171.50 and Rs 175.50.
On March 18, the rupee did not show any change in terms of the greenback for buying and selling at Rs 157.50 and Rs 158.50. The rupee continued slide, shedding more 50 paisas against the euro for buying and selling at Rs 172.00 and Rs 176.00.
On March 19, the rupee was almost unmoved in terms of the greenback for buying and selling at Rs 157.50 and Rs 158.50. The rupee, however, gained Rs 4 against the euro for buying and selling at Rs 168.00 and Rs 171.00.
On March 20, the rupee, however, lost 50 paisas in terms of the greenback for buying at Rs 158.00 and while, it held the overnight level for selling at Rs 158.50. The rupee lost 50 paisas against the euro for buying at Rs 168.50 and it also lost Rs 1.50 for selling Rs 172.50.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the dollar fell against a broad range of currencies on Monday after the US Federal Reserve made another surprise interest rate cut and major central banks took steps to relieve a shortage of dollars and provide extra liquidity.
Pressure has been building on central banks to do something to restore calm to financial markets roiled by the deepening coronavirus crisis. The US Federal Reserve cut rates to a target range of 0% to 0.25% on Sunday, US time, and said it would expand its balance sheet by at least $700 billion in coming weeks.
The Bank of Japan said it will hold an emergency policy meeting on Monday at 12 noon Japan time (0300 GMT), joining a step up in the global response to the flu-like virus that has spread from China to dozens of countries and claimed more than 5,800 lives.
Five other central banks cut pricing on their swap lines to make it easier to provide dollars to their financial institutions facing stress in credit markets.
The dollar was trading against the Indian rupee at Rs 74.233, the US currency was available at 4.301 in terms of the Malaysian ringgit and the greenback was at 7.006 versus the Chinese yuan. In the second Asian trade, the safe-haven Japanese yen ticked down and some risk currencies won a brief reprieve on signs of more economic support from policymakers, though choppy conditions on Tuesday underlined fragile confidence in markets frazzled by days of turbulence.
The dollar was trading against the Indian rupee at Rs 74.033, the greenback was at 4.331 versus the Malaysian ringgit and the US currency was available at 7.001 in terms of the Chinese yuan. In the third Asian trade, the safe-haven yen gained sharply, but the dollar held onto hefty overnight gains against other currencies on Wednesday, as fears over the coronavirus pandemic kept markets frazzled despite massive injections of liquidity by central banks.
The dollar was trading against the Indian rupee at Rs 74.168, the US currency was at 4.355 in terms of the Malaysian ringgit and the greenback was at 7.019 versus the Chinese yuan. In the fourth Asian trade, the dollar resumed its relentless climb against major currencies on Thursday as wild financial market volatility and worries over tightening liquidity triggered by the coronavirus pandemic sparked an investor flight into cash.
Sterling teetered near the lowest since at least 1985 against the greenback.
The euro briefly rose against the dollar and the pound after the European Central Bank announced a 750 billion euro ($816.83 billion) asset-purchase programme in response to the coronavirus outbreak, but even this effort was overwhelmed by a stampede into the dollar.
The dollar was trading against the Indian rupee at Rs 74.993, the greenback was at 4.404 versus the Malaysian ringgit and the US currency was available at 7.077 in terms of the Chinese yuan.
In the final Asian trade, the dollar was headed for its biggest weekly gain since the 2008 crisis on Friday, as the coronavirus pandemic drives a dash for cash that is stretching the world's financial plumbing.
Even the US Federal Reserve's extension of discount dollar funding - already available to six of the world's biggest central banks - to nine more overnight showed only the most tentative signs of satisfying demand for greenbacks.
In volatile trade in Asia on Friday the British pound fell to a fresh 35-year low of $1.1414. The Aussie and kiwi oscillated in a 1.5 cent range - eventually turning positive.
The dollar rose 0.5% against the yen to a month-high of 111.30 yen. Already thin liquidity was reduced further by a Japanese public holiday, exacerbating sharp moves. The dollar was available versus the Indian rupee at Rs 74.978, the greenback was at 4.377 in terms of the Malaysian ringgit and the US currency was trading against the Chinese yuan at 7.071.