The rupee extended current losses against the dollar on the money market during the week, ended on December 08, 2018. The rupee lost Re one in relation the dollar for buying and selling at Rs 138.88 and Rs 138.90.
INTER-BANK MARKET RATES: OPEN MARKET RATES: The rupee fell sharply against the dollar for buying and selling at Rs 139.30 and Rs 139.80. The rupee also fell sharply versus the euro for buying and selling at Rs 157.40 and Rs 1590.20.
Commenting on the declining trend in the rupee value against the dollar, marketmen said that the demand of the US currency increased to meet payment requirements. It is expected that rise in dollars demand likely to fall due to drop in the oil prices in the international market, they said. They also said that the rupee is likely to touch Rs 142-145 new lows in terms of the dollar. The demand for dollars is showing significant rise, and it looks that the rupee may come under pressure in the coming days.
INTER-BANK MARKET RATES: On Monday, the rupee picked up 45 paisas in relation to the dollar for buying at Rs 137.80 and it also rose by Rs 1.25 for selling at Rs 138.00. On Tuesday, the rupee rose by one paisa in relation to the dollar for buying at Rs 137.79 and it also rose by 19 paisas for selling at Rs 137.81. On Wednesday, the rupee lost about 81 paisas against the dollar for buying and selling at Rs 138.58 and Rs 138.62. On Thursday, the rupee continued slide versus the dollar, losing 16 paisas for buying at Rs 138.74 and it also shed 13 paisas for selling Rs 138.75. On Friday, the rupee shed 14 paisas versus the dollar for buying and selling at Rs 138.88 and Rs 138.90..
OPEN MARKET RATES: On December 3, the rupee did not move any side versus the dollar for buying and selling at Rs 137.00 and Rs 138.00. The domestic currency showed slight change in terms of the euro for buying and selling at Rs 154.50 and Rs 156.30. On December 4, the rupee, however, shed 50 paisas versus the dollar for buying at Rs 137.50 while the local currency stayed put for selling Rs 138.00.
The domestic currency fell sharply in terms of the euro for buying and selling at Rs 155.80 and Rs 157.50. On December 5, the rupee shed 50 paisas for buying and selling at Rs 138.00 and Rs 138.50. The rupee was trading versus the euro at Rs 155.50 and Rs 157.20.
On December 6, the rupee failed to halt it's erosion in relation to the dollar, dropping Re one for buying and selling at Rs 139.00 and Rs 139.50. The rupee was down by 40 paisas versus the euro for buying and selling at Rs 155.90 and Rs 157.50. On December 7, the rupee dropped 20 paisas in relation to the dollar for buying and selling at Rs 139.20 and Rs 139.70, they said. The rupee also lost Rs 1.10 against the euro for buying and selling at Rs 157.00 and Rs 158.80.
On December 8, the rupee shed 10 paisas in relation to the dollar for buying and selling at Rs 139.30 and Rs 139.80, they said. The rupee also fell against the euro, sliding 40 paisas for buying and selling at Rs 157.40 and Rs 1590.20.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the dollar weakened across the board on Monday as investor demand for riskier assets rose after China and the US agreed to a ceasefire in their trade war that has shaken global markets.
The dollar was trading against the Indian rupee at Rs 70.035, the US currency was at 4.170 in terms of the Malaysian ringgit and the greenback was available at 6.907 versus the Chinese yuan. In the second Asian trade, the dollar slipped in Asia on Tuesday as US Treasury yields fell to three-month lows, a sign some investors were wagering the Federal Reserve would slow the pace of its rate hikes. The dollar index, a gauge of its value versus six major peers, was off 0.23 percent at 96.8.
The dollar was available against the Indian rupee at Rs 70.405, the greenback was at 4.149 in terms of the Malaysian ringgit and the US currency was at trading versus the Chinese yuan at 6.841. In the third Asian trade, the dollar trimmed some of its recent losses but remained under pressure on Wednesday, as an inversion in part of the Treasury yield curve raises concerns about a potential US slowdown.
The Australian dollar slumped more than half a percent against the greenback as disappointing economic data further dimmed the chance of a rise in rates. The Aussie moved sharply off a four-month top of $0.7394 hit early in the week.
Investors were nervous over an inversion of the yield curve between three-year and five-year US Treasury notes and between two-year and five-year notes which limited the dollar's gains.
The dollar was trading against the Indian rupee at Rs 70.590, the greenback was available at 4.156 in terms of the Malaysian ringgit and the US currency was 6.862 in terms of the Chinese yuan.
In the fourth Asian trade, the dollar fell against the yen on Thursday as growing investor aversion to riskier assets hit equities and pushed down US Treasury yields.
The dollar was trading against the Indian rupee at Rs 71.010, the greenback was at 4.165 in terms of the Malaysian ringgit and the US currency was at 6.877 versus the Chinese yuan.
In the final Asian trade, the dollar struggled to recover against its key rivals, hobbled by renewed speculation of an imminent pause in the Federal Reserve's tightening cycle, perhaps as soon as it delivers a widely expected rate hike later this month.
The dollar index, which measures the greenback against a basket of six major peers, was basically flat at 96.804 in early trade. The index shed 0.3 percent during the previous session, closing at one-week low and down 0.9 percent from a 17-month peak hit on Nov. 12. The benchmark US 10-year Treasury yield was last at 2.896 percent after dipping to its lowest level since late August overnight.
The dollar was trading against the Indian rupee at Rs 70.588, the greenback was at 4.160 in terms of the Malaysian ringgit and the US currency was available at 6.877 versus the Malaysian ringgit. In the final US trade, the dollar fell against the euro on Friday, after data showed US employers hired fewer workers than forecast in November, raising worries that US growth is moderating and the Federal Reserve may stop raising rates sooner than previously thought.
Non-farm payrolls increased by 155,000 jobs last month, while the unemployment rate was unchanged at near a 49-year low of 3.7 percent. Economists polled by Reuters had forecast payrolls increasing by 200,000 jobs in November.
Average hourly earnings rose six cents, or 0.2 percent in November after gaining 0.1 percent in October. That left the annual increase in wages at 3.1 percent, matching October's jump, which was the bbiggest gain since April 2009 Fed policymakers are still widely expected to raise interest rates again at their December 18-19 meeting, but the focus is on how many rate hikes will follow in 2019.
An index that tracks the greenback versus the euro, yen, sterling and three other currencies was down 0.24 percent at 96.579.
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