The rupee was firm against the dollar on the money market during the shortened week, on account of Eid-ul-Fitr holidays. In the interbank market, the rupee was trading versus the dollar at Rs 104.86 and Rs 104.88.
In the open market, the rupee did not show any change in relation to the dollar for buying and selling at Rs 105.00 and Rs 105.20. The rupee picked up Rs 1.30 in terms of the euro for buying and selling at Rs at Rs 114.50 and Rs 115.50.
Surprisingly, it was noted that despite the lower-than-expected remittances, the rupee showed firmness versus the dollar, some experts said.
In the month of May, at a time, the rupee was trading at Rs 106 in terms of the greenback due to strong demand, they noted. In the short-term, it appeared that the rupee may not fluctuate sharply against the dollar, they added.
INTER-BANK MARKET RATES: On Monday, the rupee shed four paisas in terms of dollar for buying and selling at Rs 104.86 and Rs 104.88.
OPEN MARKET RATES: On July 4, the rupee, gained 10 paisas against the dollar for buying and selling at Rs 105.00 and Rs 105.20. The rupee also picked up 20 paisas in relation to the euro for buying and selling at Rs 115.80 and Rs 116.80.
On July 9, the rupee held the present levels against the dollar for buying and selling at Rs 105.00 and Rs 105.20. The rupee managed to recover sharply in relation to the euro, picking up Rs 1.30 for buying and selling at Rs 114.50 and Rs 115.50.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the Australian dollar staged an impressive rebound, after slumping as much as a cent following the country's weekend election that produced no clear winner.
The Aussie, which skidded as far as $0.7410, was back flirting with 75 cents and flat on the day. Against the yen, it was at 77.00, well off an early low of 76.22.
Lifting the mood, both Moody's and Fitch said there was no immediate threat to Australia's top notch triple-A rating despite a political stalemate that could take days if not weeks to clear.
The dollar was trading against the Indian rupee at Rs 67.20, the US currency was available at 3.9930 and the greenback was at 6.6610 versus the Chinese yuan.
In the third Asian trade, sterling carved out a fresh 31-year trough while the safe-haven yen soared on heightening fears of the broader impact of Britain's vote last month to exit the European Union.
The pound slid as far as $1.2798, breaking through the previous low of $1.3000 set overnight. It was last down 1.2 percent at $1.2867. The euro jumped as high as 86.26 pence, its highest since August 2013, and was last up 0.9 percent at 85.76 pence.
In the fourth Asian trade, the yen stood tall while sterling foundered in the fallout from Britain's vote last month to exit the European Union.
The euro slipped 0.2 percent to 112.19 yen, but managed to hold above its Wednesday low of 110.84 and a 3 1/2-year low of 109.30 logged soon after the results of the Brexit referendum were apparent. The dollar slipped 0.3 percent to 101.04 yen, though it also remained above the previous session's low of 100.20 as well as its June 24 nadir of 99.000 hit after the UK's vote.
In the final Asian trade, the dollar edged down against most major currencies but remained on track for a weekly gain, as investors awaited US jobs data later in the session to see if the labour market is stronger than previous surveys indicated.
The consensus forecast is for a 175,000 jobs gain for June, according to a Reuters poll, but investors remain wary given the negative surprise in the May payrolls report, which some expect to be upwardly revised.
At the week-end, the dollar slid against the yen and some currencies in choppy trading on the view that the much stronger-than-expected US employment payrolls report will not persuade the Federal Reserve just yet to raise interest rates again this year.
The greenback rose after the US jobs data, reversing losses against the yen and climbing to two-week highs against the euro and a five-week peak versus the Swiss franc.
But gains against the yen evaporated and the dollar traded mostly lower on the day. The dollar, however, remained higher against the euro and Swiss franc, but fell versus the Australian, Canadian, and New Zealand currencies.
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