THE RUPEE: steady trend

The rupee, somehow, managed to recover some grounds against the dollar during the week, ended on Oct 27, 2018. The rupee gained Rs 1.35 in terms of the dollar for buying and selling at Rs 132.45 and Rs 132.50.
INTER-BANK MARKET RATES: OPEN MARKET RATES: The rupee recovered Rs 1.80 in relation to the dollar for buying at Rs 131.20 and it also picked Rs 2.30 for selling at Rs 131.70. The national currency also gained over Rs 4 in terms of the euro for buying and selling at Rs 148.75 and Rs 150.75.
Commenting on the performance of the rupee's movement against the dollar, some money experts said that domestic currency showed slight weakness due to short supply of dollars. The domestic currency likely to move cautiously in relation to the dollar in the near future, they added. If supply of dollars improves, the rupee to depict slight fluctuations in the coming days, they said. Reports showing that the rupee improved following the Saudi government's assurance of 3 billion dollars to place in the government's account and another 3 billion dollars relief for oil payment.
INTER-BANK MARKET RATES: On Monday, the rupee lost about 18 paisas in terms of the dollar for buying and selling at Rs 133.90 and Rs 133.95, dealers said. On Tuesday, the rupee shed two paisas in terms of the dollar for buying at Rs 133.92 while the local currency did not move any side for selling at Rs 133.95.
On Wednesday, the rupee picked up about Rs 1.70 in terms of the dollar for buying and selling at Rs 132.00 and Rs 132.25. On Thursday, the rupee shed 20 paisas in terms of the dollar for buying at Rs 132.20 and it also slipped by five paisas for selling at Rs 132.30. On Friday, the rupee continued slide in terms of the dollar, losing 25 paisas for buying and selling at Rs 132.45 and Rs 132.50.
OPEN MARKET RATES: On Oct 22, the rupee, however, picked up 20 paisas in relation to the dollar for buying and selling at Rs 133.00 and Rs 134.00, they said. The national currency, shed 10 paisas in terms of the euro for buying and selling at Rs 152.50 and Rs 154.50, they said.
On October 23, the rupee lost 40 paisas in relation to the dollar for buying at Rs 133.40 while it gained 10 paisas for selling at Rs 133.90, they said. The national currency picked up 50 paisas in terms of the euro for buying and selling at Rs 152.00 and Rs 154.00. On Oct 24, the rupee picked up Rs 2.60 in relation to the dollar for buying and selling at Rs 131.30 and Rs 131.80. The national currency also appreciated sharply in terms of the euro for buying and selling at Rs 149.00 and Rs 153.00.
On Oct 25, the rupee rose by 10 paisas in relation to the dollar for buying and selling at Rs 131.20 and Rs 131.70. The national currency also gained 70 paisas in terms of the euro for buying and selling at Rs 148.30 and Rs 151.30.
On Oct 26, the rupee dropped by 10 paisas in relation to the dollar for buying and selling at Rs 131.30 and Rs 131.80. The national currency also lost 40 paisas in terms of the euro for buying at Rs 148.70, it, however, gained Rs 1.30 for selling at Rs 150.00.
On Oct 27, the rupee recovered 10 paisas in relation to the dollar for buying and selling at Rs 131.20 and Rs 131.70. The national currency also gained five paisas in terms of the euro for buying at Rs 148.70, it, however, lost 75 paisas for selling Rs 150.75.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the euro and the British pound edged down against the dollar on Monday as investors awaited developments around Brexit as well as Italy's budget plan which drew heavy criticism from the European Union.
The greenback hardly budged in early Asian trade, with a broad index gauging its value against major peers trading flat at 95.73, having hit a of high of 96.09 on Friday.
Both the euro and sterling managed to hold firm, though traders said the currencies remained sensitive to news around Brexit and a controversial Italian budget proposal. The euro lost 0.1 percent versus the greenback, changing hands at $1.15, having gained 0.5 percent versus the dollar on Friday.
The dollar was trading against the Indian rupee at Rs 73.230, the greenback was available at 4.156 versus the Malaysian ringgit and the US currency was at 6.932 in terms of the Chinese yuan. In the second Asian trade, the Japanese yen, a safe haven in uncertain times, firmed against the dollar on Tuesday, as the euro and sterling suffered due to doubts over Italy's budget spending and over British Prime Minister Theresa May's future with Brexit talks stalled.
The dollar weakened 0.21 in Asian trade to trade at 112.55 yen, gaining as risk-shy investors retreated from Asia's main share markets. The sterling traded flat at $1.2960 on Tuesday, having lost 0.83 percent on Monday, its steepest fall in percentage terms since September 21. The pound has lost 2.2 percent versus the greenback in the last seven trading sessions.
With just over five months until Britain is scheduled to exit the EU, Brexit talks have hit an impasse, sparking speculation that May could be toppled by rebels in her Conservative Party. The euro eased marginally to $1.1453 on Tuesday, as concern over Italy's free spending budget drove sentiment. The single currency failed to draw relief from a fall in Italian 10-year bond yields on Monday. The benchmark Italian 1-year yield declined by 3 percent on Monday, its steepest fall in percentage terms since October 3. The dollar was available against the Indian rupee at Rs 73.555, the greenback was at 4.158 in terms of the Malaysian ringgit and the US currency was at 6.939 versus the Chinese yuan.
In the third Asian trade, the safe-haven Japanese yen and the Swiss franc held firm against the US dollar on Wednesday as risk-averse investors trimmed their exposure to the greenback in the face of a weak performance on Wall Street.
Worries about US corporate earnings knocked the Dow Jones Industrial Average and the S&P 500 on Tuesday, though they had pared losses by the closing bell.
The US dollar index, a gauge of its value against six major peers, was wobbly in early Asia trade. It was last slightly lower at 95.94. The dollar was trading against the Indian rupee at Rs 73.565, the greenback was at 4.161 in terms of the Malaysian ringgit and the US currency was available at 6.936 versus the Chinese yuan.
In the fourth Asian trade, the Japanese yen rose against the dollar on Thursday as a rout on Wall Street and weak European and US economic data dented global risk sentiment, sending investors scurrying to safe-haven assets including government bonds.
The yen, seen as a safety-bet during times of market turmoil and economic stress, advanced 0.2 percent to trade at 112.06 on the dollar on Thursday. Over the past week, nervousness around US corporate earnings and geopolitical uncertainty added to heightened worries about global growth, Italy's free spending budget and Sino-US trade tensions.
On Wall Street, the S&P 500 declined for a sixth day in a row as weak forecasts from chipmakers added to concerns about the impact on earnings from tariffs and a slowdown in China's economy. The dollar was trading against the Indian rupee at Rs 73.295, the greenback was at 4.170 in terms of the Malaysian ringgit and the US currency was available at 6.943 in relation to the Chinese yuan.
In the final Asian trade, the Japanese yen strengthened versus the US dollar on Friday as appetite for riskier assets remained suppressed while the euro stayed near two-month lows after the European Central Bank failed to convince markets that rates would rise. The Australian dollar, often viewed as a gauge of risk appetite, hit a near 33-month low as sentiment in Asian trade weakened.
Thursday's rebound of US stocks climbed after the previous session's massive sell-off was not sustained into the Asian day, which lent support to safe haven currencies.
The euro traded marginally lower at $1.1365 on Friday. It hit a two-month low of $1.1353 the previous session, following European Central Bank President Mario Draghi's failure to convince traders the ECB could pursue monetary tightening after next summer as political and economic uncertainties grow in the monetary union.
The dollar was trading against the Indian rupee at Rs 73.405, the greenback was at 4.175 in terms of the Malaysian ringgit and the US currency was available at 6.960 in relation to the Chinese yuan. In the final US trade, the US dollar rose to a two-month high of 96.860 against a basket of major currencies in morning trading on Friday after US headline third-quarter gross domestic product data exceeded estimates.
The US economy slowed less than expected in the third quarter as the strongest consumer spending in nearly four years and a surge in inventory investment offset a tariff-related drop in soybean exports. GDP increased at a 3.5 percent annualized rate, the Commerce Department said on Friday in its first estimate.
US President Donald Trump's protectionist policies took 1.8 percent off of the GDP figure, said Greg Anderson, global head of FX strategy at BMO Capital Markets.
The GDP report also showed the Fed's preferred inflation gauge, the personal consumption expenditures (PCE) price index excluding food and energy, missed expectations after it increased 1.6 percent in the third quarter. The core PCE price index rose at a 2.1 percent pace in the April-June period.