The rupee posted fresh gains cautiously against the dollar on the money market during the wweek, ended on March 11, 2017.
OPEN MARKET RATES: The rupee managed to gain 30 paisas against the dollar for buying and selling at Rs 106.50 and Rs 106.70. It, however, lost 25 paisas in terms of the euro for buying and selling at Rs 113.00 and Rs 114.50.
INTER-BANK MARKET RATES: The rupee depicted firmness in relation to the dollar, moving almost in the band of Rs 104.84 and Rs 104.85.
Commenting on the future direction in the money market, the Chairman of Forex Association of Pakistan (FAP), Malik Bostan said that the rupee to trade between Rs 106 and Rs 107 versus the dollar in the coming days.
Even after the likely increase in the interest rate by the Fed, the dollar may depict it's strength in the world market, but the greenback would not fluctuate sharply in terms of the rupee, locally, he added.
Furthermore, if, tension decreases with the neighbouring countries, the rupee to depict it's muscles against the dollar in the coming days.
After comments from Federal Reserve officials heightened market expectations for a US rate hike this month. A Fed policy decision is due at the end of a March 14-15 meeting.
OPEN MARKET RATES: On Monday, the rupee managed to gain 20 paisas against the dollar for buying and selling at Rs 106.80 and Rs 107.00. It also picked up 50 paisas against the euro for buying and selling at Rs 112.75 and Rs 114.25.
On Tuesday, the rupee picked up 30 paisas gains against the dollar for buying and selling at Rs 106.50 and Rs 106.70, they said. It, however, lost 75 paisas against the euro for buying and selling at Rs 112.50 and Rs 114.00.
On Wednesday, the rupee sustained overnight rising trend in terms of dollar, gaining 30 paisas for buying and selling at Rs 106.20 and Rs 106.40. It also picked up one rupee against the euro for buying and selling at Rs 111.50 and 113.00.
On Thursday, the rupee followed the same pattern, depicting no change in relation to the greenback for buying and selling at Rs 106.20 and 106.40.
The national currency, however, shed 25 paisas in terms of the euro for buying and selling at Rs 111.75 and Rs 113.25.
In the fourth Asian trade, sentiment towards most emerging Asian currencies has worsened from two weeks ago, after comments from Federal Reserve officials heightened market expectations for a US rate hike this month, a Reuters poll showed.
Investors were estimated to have trimmed their bullish bets on the Indonesian rupiah, Indian rupee, Thai baht and Taiwan dollar, according to the survey.
The dollar was trading against the Indian rupee at Rs 66.793, the greenback was at 4.457 versus the Malaysian ringgit and the US currency was at 6.919 in terms of the Chinese yuan.
On Friday, the rupee lost 30 paisas against the dollar for buying and selling at Rs 106.50 and Rs 106.70. It also dropped by 85 paisas in terms of the euro for buying and selling at Rs 112.60 and Rs 114.10.
On Saturday, the rupee showed no change against the dollar for buying and selling at Rs 106.50 and Rs 106.70. It, however, lost 40 paisas in terms of the euro for buying and selling at Rs 113.00 and Rs 114.50.
INTER-BANK MARKET RATES: The whole week, the rupee showed no major changes in terms of the dollar for buying and selling at Rs 104.84 and Rs 104.85.
OVERSEAS OUTLOOK FOR DOLLARS: In the first Asian trade, the dollar slipped, as investors locked in gains after its rise last week on growing expectations of a US interest rate hike later this month.
In addition to Yellen, four other top US central bank officials spoke at various times during the day. Fed funds futures prices show traders see more than an 85 percent chance of a rate increase this month, up from just a one in three chance early last week, according to CME Group's Fed Watch tool.
The dollar was available against the Indian rupee at Rs 66.740, the greenback was at 4.450 in terms of the Malaysian ringgit and the US currency was trading versus the Chinese yuan at 6.8990.
Inter bank buy/sell rates for the taka against the dollar on Monday: 79.46-79.49 (previous 79.40-79.40.
In the second Asian trade, the dollar steadied as investors widely expect the Federal Reserve to raise interest rates next week and are waiting for signals on the likely pace of hikes, including this week's US jobs data.
Some analysts say the dollar would not see a further rally unless Trump announces detailed economic policies.
"The dollar is not likely to gain further against the yen, with an expected range around 111 to 115 yen during March," said Masashi Murata, senior currency strategist at Brown Brothers Harriman.
The dollar was trading against the Indian rupee at Rs 66.63, the greenback was at 4.4470 versus the Malaysian ringgit and the US currency was at 6.9015 in terms of the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Tuesday: 79.49-79.49 (previous 79.46-79.49).
In the third Asian trade, most Asian currencies inched higher on Wednesday, as the dollar struggled to gain traction ahead of US jobs data due later in the week.
The dollar was trading against the Indian rupee at Rs 66.64, the greenback was at 4.4480 versus the Malaysian ringgit and the US currency was at 6.9030 in terms of the Chinese yuan.
In the final Asian trade, the dollar firmed to six-week highs against the yen, on track for weekly gains against most rivals as investors awaited US job data that is likely to reinforce expectations of a Federal Reserve interest rate hike next week.
The euro was up 0.2 percent at $1.0594, but still down 0.3 percent for the week even after comments from European Central Bank head Mario Draghi pulled it off its session lows on Thursday.
The dollar was available against the Indian rupee at Rs 66.690, the greenback was at 4.455 in terms of the Malaysian ringgit and the US currency was at 6.914 in relation to the Chinese yuan.
At the weekend, the euro hit a more than four-week high against the dollar after a report that the European Central Bank had discussed the possibility of raising interest rates before the end of its quantitative easing program.
The euro rose more than 1.1 percent against the dollar to a high of $1.0698, its strongest since Feb 9. It was the euro's largest one-day gain since June 3, 2016. That helped the continental currency to its second consecutive weekly gain against the dollar.
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