THE RUPEE: modest decline

The rupee fell modestly in relation to the dollar on the money market during the week, ended on May 15, 2017 In the open market, the rupee lost 30 paisas in terms of the dollar for buying and selling at Rs 105.80 and Rs 106.00. The rupee shed 15 paisas versus the euro for buying and selling at Rs 114.70 and Rs 116.20. In the inter-bank market, the rupee fluctuated during the week versus the dollar for buying and selling but ended at Rs 104.82 and Rs 104.83, they said.
The rupee moved cautiously against the dollar despite higher demand for the greenback, experts said. It most likely that the rupee may adopt two ways in the coming days, they said. Other analysts observed that remittances fell 2.79 percent to Rs 15.59 billion dollars. If foreign exchange reserves slide, this factor likely to push the rupee down but marginally.
OPEN MARKET RATES: On Monday, the rupee picked up 10 paisa against the dollar for buying and selling at Rs 105.50 and Rs 105.70, they said. The rupee also gained 40 paisas in terms of the euro for buying and selling at Rs 115.10 and Rs 116.60. On Tuesday, the rupee stayed put against the dollar for buying and selling at Rs 105.50 and Rs 105.70. The rupee appreciated by 35 paisas in terms of the euro for buying and selling at Rs 114.75 and Rs 116.25.
On Wednesday, the rupee lost 20 paisas against the dollar for buying and selling at Rs 105.70 and Rs 105.90. The rupee, however, appreciated by 25 paisas in terms of the euro for buying and selling at Rs 114.50 and Rs 116.00.
On Thursday, the rupee stayed put against the dollar for buying and selling at Rs 105.70 and Rs 105.90. The rupee shed 10 paisas in terms of the euro for buying and selling at Rs 114.60 and Rs 116.10. On Friday, the rupee lost 10 paisas against the dollar for buying and selling at Rs 105.80 and Rs 106.00, they said. The rupee followed the same track versus the euro, losing equal amount to Rs 114.70 and Rs 116.20.
On Saturday, the rupee did not move any side against the dollar for buying and selling at Rs 105.80 and Rs 106.00, they said. The rupee lost 55 paisas versus the euro for buying and selling at Rs 114.70 and Rs 116.20, they said.
INTERBANK MARKET RATES: The rupee traded within a band of versus the dollar for buying and selling at Rs 104.78 and Rs 104.80 and Rs 104.80 and Rs 104.82.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the euro pulled away from highs hit early in the Asian session on Monday as investors took profits from its gains after centrist Emmanuel Macron's victory over the far-right Marine Le Pen in France's presidential election. The euro had been on a rising trend in the days ahead of the election, as investors began to position for a Macron victory.
It last slipped 0.2 percent to $1.0975 against the dollar, and to 123.76 yen, also down 0.2 percent. The dollar was available against the dollar at Rs 64.215, the greenback was at 4.332 in terms of the Malaysian ringgit and the US currency was at 6.902 in relation to the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Monday: 80.45-80.45 (previous 80.45-80.45).
In the second Asian trade, the euro pulled back from recent six-month highs, but remained well-supported as fading worries over political populism and signs of improving economic conditions in Europe bolstered investor confidence.
The euro fell to $1.0921 from $1.1024, its highest level in six months, hit in early Monday trade on relief after centrist Emmanuel Macron's victory in France's presidential election.
The euro's retreat was driven solely by profit-taking. I think it is going to regain momentum over time," said Yukio Ishizuki, senior currency analyst at Daiwa Securities. Reflecting easing concerns over European politics, the common currency gained against the safe-haven Swiss franc, hitting a seven-month high of 1.0918 franc on Monday and last stood at 1.0915. Against the yen, it stood at 123.72 yen after Monday's one-year high of 124.58.
The dollar was trading against the Indian rupee at Rs 64.535, the greenback was at 4.341 versus the Malaysian ringgit and the US currency was at 6.907 in terms of the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Tuesday: 80.47-80.48 (previous 80.45-80.45).
In the third Asian trade, the dollar slid and the perceived safe-haven yen gained after US President Donald Trump abruptly fired FBI Director James Comey in a move that shocked Washington and piqued investors' aversion to risk. Comey had been leading his agency's investigation into alleged Russian meddling in the 2016 US presidential campaign and possible collusion with Trump's campaign. Democrats immediately accused Trump of having political motives.
The dollar was trading against the Indian rupee at Rs 64.620, the greenback was at 4.345 versus the Malaysian ringgit and the UD currency was at 6.906 in relation to the Chinese yuan. In the fourth Asian trade, the dollar edged up to eight week highs against the yen in early Asian trading, as investors' focus turned back to the strength of the economy and away from US politics.
The dollar was slightly up on the day at 114.31 yen after earlier rising as high as 114.37, its highest since March 15. The yen had gained in the previous session after US President Donald Trump abruptly fired FBI Director James Comey, raising investors' fears that the controversial move would lead to political turmoil and derail US stimulus steps and tax reform.
Such fears were not entirely vanquished. Days before he was fired, Comey told lawmakers he sought more resources for his agency's probe into possible collusion between Trump's presidential campaign and Russia to sway the 2016 US election, a congressional source said on Wednesday. The dollar was trading against the Indian rupee at Rs 64.525, the greenback was at 4.346 versus the Malaysian ringgit and the US currency was at 6.905 in terms of the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Wednesday: 80.50-80.50 (previous 80.47-80.48). In the final Asian trade, the dollar traded below an eight-week high against the yen, with the near-term focus on whether coming US economic data would provide the catalyst for further gains in the greenback.
The dollar eased 0.1 percent to 113.70 yen, having retreated from its eight-week high of 114.38 yen on May 10. The dollar was available against the Indian rupee at Rs 64.305, the greenback was trading versus the Malaysian ringgit at 4.346 and the US currency was at 6.901 in terms of the Chinese yuan.
At the week-end, the US dollar fell, easing from a roughly two-month high against the yen touched in the prior session and slumping against the euro, after weaker-than-expected US economic data raised doubts about whether the Federal Reserve would assume a hawkish bent through the end of the year.
The US core consumer price index (CPI) increased 1.9 percent year-on-year in April, the smallest gain since October 2015. Economists polled by Reuters expected the inflation measure to remain at 2 percent. Federal funds futures implied traders saw about a 49 percent chance the Fed would increase rates twice by the end of 2017 shortly after the data, compared with 54 percent just before the release of the latest readings on US store sales and the consumer price index, CME Group's FedWatch program showed.