THE RUPEE: steadier trend

Firmness persisted on the money market as the rupee held its present levels versus the dollar during the week, ended on 19 August, 2017. The rupee picked up 20 paisas in relation to the dollar for buying and selling at Rs 106.50 and Rs 106.70. The national currency also gained 50 paisas versus the euro for buying and selling at Rs 124.00 and Rs 125.50.
INTERBANK MARKET RATES: The rupee moved slightly versus the dollar for buying and selling at Rs 105.39 and Rs 105.40. The rupee moved cautiously against the dollar amid improved supply of the greenback, some experts said. It is expected that the rupee may travel within tight range in terms of the greenback, they said.
OPEN MARKET RATES: On Monday, the rupee-dollar official rates were not issued due to 70th Independence Day holiday. On Tuesday, the rupee did not move any side in relation to the dollar for buying and selling at Rs 106.70 and Rs 106.90. The rupee, however, picked up Re one in terms of the euro for buying and selling at Rs 124.50 and Rs 126.00.
On Wednesday, the rupee posted fresh gains in relation to the dollar for buying and selling at Rs 106.60 and Rs 106.80. The rupee also picked up 50 paisas in terms of the euro for buying and selling at Rs 124.00 and Rs 125.50. On Thursday, the rupee picked up 10 paisas in relation to the dollar for buying and selling at Rs 106.50 and Rs 106.70. The rupee also gained 25 paisas in terms of the euro for buying and selling at Rs 123.75 and Rs 125.25.
On Friday, the rupee was unchanged in relation to the dollar for buying and selling at Rs 106.50 and Rs 106.70. The rupee, however, failed to retain overnight levels in terms of the euro, losing 25 paisas for buying and selling at Rs 124.00 and Rs 125.50.
On Saturday, the rupee firmly held the overnight levels in relation to the dollar for buying and selling at Rs 106.50 and Rs 106.70, they said. The rupee also did not move any side in terms of the euro for buying and selling at Rs 124.00 and Rs 125.50.
OVERSEAS MARKET OUTLOOK FOR DOLLAR: In the second Asian trade, the dollar rose against the yen, pulling away from a recent four-month low, as concerns over tensions between the United States and North Korea eased for now, supporting risk appetite.
The dollar rose 0.6 percent to 110.26 yen, pulling away from a low of 108.72 yen set on Friday, its lowest level since April 19. The dollar was trading against the Malaysian ringgit at 4.292 and the greenback was at 6.673 in terms of the Chinese yuan.
In the third Asian trade, the dollar was steady, holding onto most of its gains made after strong US retail sales data kept alive the chance of another Federal Reserve interest rate hike this year. The dollar index, which tracks the greenback against a basket of six major rival currencies, was flat on the day at 93.835, well above its 15-month low of 92.548 plumbed earlier this month.
The dollar was trading against the Indian rupee at Rs 64.260, the US currency was available at 4.297 in terms of the Malaysian ringgit and the greenback was at 6.688 in relation to the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Wednesday: 80.70-80.70 (previous 80.70-80.70).
In the fourth Asian trade, the US dollar was on the defensive after the minutes from the Federal Reserve's last policy meeting showed policymakers were increasingly wary of recent softness in inflation and could delay a rate hike.
The readout of the July 25-26 meeting showed some members called for halting interest rate hikes until it was clear the inflation trend was transitory, but it also indicated the Fed was poised to begin reducing its $4.2 trillion portfolio of bonds.
The dollar also stepped back to 109.84 yen, down 0.3 percent from late US trade and down more than a full yen from Wednesday's high of 110.95. The dollar's index against a basket of six major currencies slipped to 93.39 from Wednesday's three-week high of 94.145. Inter bank buy/sell rates for the taka against the dollar on Thursday: 80.70-80.70 (previous 80.70-80.70).
In the final Asian trade, the dollar slipped versus the yen, hampered by renewed investor concerns over the Trump administration's ability to push forward its economic policy agenda. The dollar fell 0.2 percent to 109.33 yen, pulling further away from this week's high of 110.95 yen that had been set on Wednesday.
The yen often comes into favour in times of market stress, partly due to the notion that Japanese investors might eventually repatriate their overseas assets if such market turmoil persists. The dollar was trading against the Indian rupee at Rs 64.108, the US currency was trading against the Malaysian ringgit at 4.295 and the greenback was at 6.677 in relation to the Chinese yuan.
At the week-end, the dollar fell against a basket of major currencies as continued uncertainty over the economic agenda of US President Donald Trump pushed investors out of the greenback. The dollar dropped to a four-month low against the yen in early trading but retraced some of its losses after rumours began to swirl about the impending firing of White House senior adviser Steve Bannon. The White House confirmed Bannon's exit in a statement Friday afternoon.
As Trump's chief strategist, Bannon has been seen as representing a right-wing political faction that critics have said encourages white supremacists like those involved in the deadly rioting last weekend in Charlottesville, Virginia. The dollar dropped nearly 1 percent against the yen, falling to 108.58 yen, its lowest since late April. It was last down 0.25 percent at 109.31 yen.