THE RUPEE: slight recovery

A modest recovery was seen in the value of the rupee versus the dollar on the money market during the week, ended on 07, 2017. In the interbank market, the rupee picked up seven paisas in relation to the dollar for buying and selling at Rs 104.69 and Rs 104.70.
In the open market, the rupee picked up 20 paisas in terms of the dollar for buying and selling at Rs 104.70 and Rs 104.90, they said. The rupee also managed to gain 60 paisas against the euro for buying and selling at Rs 119.30 and Rs 120.30, they added.
Market men said that after a long-time, the rupee managed to minimise differences between the open and inter-market rates.
In the open and interbank market, rates were not showing major differences as the rupee gained sharply versus the dollar after crossing 105 mark, they added.
It looks that the rupee may struggle to recover more ground in terms of the greenback in the near future, they predict.
INTER-BANK MARKET RATES: On Monday, the rupee picked up four paisas versus their dollar for buying and selling at Rs 104.76 and Rs 104.78.
On Tuesday, the rupee shed two paisas versus their dollar for buying and selling at Rs 104.78 and Rs 104.80. On Wednesday, the rupee picked up seven paisas versus their dollar for buying and selling at Rs 104.70 and Rs 104.73. On Thursday, the rupee gained three paisas versus their dollar for buying and selling at Rs 104.68 and Rs 104.69, dealer said.
On Friday, the rupee inched up by one paisa versus their dollar for buying and selling at Rs 104.69 and Rs 104.70.
OPEN MARKET RATES: On May 2, the rupee also gained 10 paisas in terms of the dollar for buying and selling at Rs 104.90 and Rs 105.10. The rupee extended week-ends losses in relation to the euro, losing 15 paisas for buying and selling at Rs 119.90 and Rs 120.90.
On May 3, the rupee extended overnight gains in terms of the dollar, recovering more 10 paisas for buying and selling at Rs 104.80 and Rs 105.00, they said. The rupee, however, picked up 60 paisas in relation to the euro for buying and selling at Rs 120.50 and Rs 121.50, they added. On May 4, the rupee also rose by five paisas in terms of the dollar for buying and selling at Rs 104.75 and Rs 104.95, they said. The rupee appreciated by 30 paisas in relation to the euro for buying and selling at Rs 120.20 and Rs 121.20.
On May 5, the rupee depicted no variation in terms of the dollar for buying and selling at Rs 104.75 and Rs 104.95. The rupee maintained surge in relation to the euro, rising by 70 paisa for buying and selling at Rs 119.50 and Rs 120.50.
On May 6, the rupee stayed put in terms of the dollar for buying and selling at Rs 104.75 and Rs 104.95. The rupee gained 10 paisas in relation to the euro for buying and selling at Rs 119.40 and Rs 120.40.
On May 7, the rupee recovered five paisas in relation to dollar for buying and selling at Rs 104.70 and Rs 104.90. The rupee also managed to gain 10 paisas against the euro for buying and selling at Rs 119.30 and Rs 120.30.
OVERSEAS OUTLOOK FOR DOLALRS: In the first Asian session, the yen touched a fresh 18-month high against the greenback after its biggest weekly gain in over seven years as traders bet that Tokyo policymakers have limited capacity to stem the yen's gains.
The dollar fell as far as 106.14 yen, breaking through Friday's trough of 106.27. It slumped nearly 5 percent last week - a percentage fall not seen since 2008-after the Bank of Japan refrained from adding fresh stimulus.
Finance Minister Taro Aso was quoted in Japanese media over the weekend as being unhappy with the yen's strength, saying it was "extremely concerning". Yet many traders doubt Japan can intervene in the market given Tokyo appears to have limited support. Inter bank buy/sell rates for the taka against the dollar on Monday: 78.40-78.40 (previous 78.40-78.40).
In the second Asian session, The dollar set a fresh 18-month low versus the yen on Tuesday, as the yen rose in a holiday-thinned market, while the Australian dollar held firm ahead of an interest rate decision from Australia's central bank.
The dollar last traded at 106.21 yen, down 0.2 percent on the day. The greenback fell to as low as 106.05 yen at one point, its lowest level since October 2014.
The yen's rise occurred in thin trading conditions with Japanese markets closed from Tuesday to Thursday for public holidays.
The dollar was trading against the Indian rupee at Rs 66.33, the greenback was at 3.9250 in terms of the Malaysian ringgit and the US currency was at 6.4748 in terms of the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Tuesday: 78.40-78.40 (previous 78.40-78.40).
In the third Asian session, the yen slipped from an 18-month high against the dollar, losing some steam as position squaring set in after its sharp rally since last week.
The dollar rose 0.6 percent to 107.22 yen, pulling away from Tuesday's low of 105.55 yen, the dollar's weakest level since October 2014.
The dollar's gains against the yen came in thin market conditions, with Japanese markets closed on Wednesday and Thursday for public holidays. The dollar could see some whippy trading against the yen over the next couple of days until Tokyo market players return from their holidays, said Satoshi Okagawa, senior global markets analyst for Sumitomo Mitsui Banking Corporation in Singapore.
The dollar was trading against the Indian rupee at Rs 66.58, the US currency was at 3.9780 versus the Malaysian ringgit and the greenback was at 6.4983 in terms of the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Wednesday: 78.40-78.40 (previous 78.40-78.40).
In the fourth Asian session, the yen showed signs of fatigue after stepping back from recent peaks, while the greenback was supported by optimism the US economy could bounce back after nearly stalling in the first quarter.
The dollar edged up 0.1 percent to 107.13 yen, pulling away from an 18-month trough of 105.55 set on Tuesday. The euro rose to 123.03 yen, off a three-year low of 121.665 plumbed last Friday.
The dollar was trading versus the Indian rupee at Rs 66.58, the greenback was at 3.9980 against the Malaysian ringgit and the US currency was at 6.5027 in relation to the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar: 78.40-78.40 (previous 78.40-78.40).
In the final Asian session, the dollar firmed against the euro and yen on Friday ahead of the April US non-farm payrolls due later in the day that could support the greenback.
The dollar stood steady at 107.14 yen, having gained for three straight days to pull away from an 18-month low of 105.55 plumbed on Tuesday. The US currency was en route to gain 0.6 percent versus the yen this week.
The yen, which jumped after the Bank of Japan opted to stand pat on monetary policy last week, had some of its gains trimmed after Japanese officials said they could act if needed to halt its rise.
The euro, which had risen to an eight-month peak of $1.1616 on Tuesday, was effectively unchanged at $1.1405 after losing 0.8 percent overnight.
The dollar was trading against the Indian rupee at Rs 66.60, the greenback was at 4.0015 in terms of the Malaysian ringgit and the US currency was available at 6.5060 in terms of the Chinese yuan.
At the week-end, the dollar dipped against a basket of currencies, though it recouped much of its losses tied to news of slower-than-expected domestic job growth in April which supported ideas the Federal Reserve would not raise interest rates in June.
The dollar index, which measures the greenback against the euro, yen and four other currencies, was last down 0.1 percent at 93.696. It had fallen as much as 0.6 percent earlier in the day, after the government said US employers hired 160,000 workers in April, the fewest in seven months.