THE RUPEE: weak trend

The rupee depreciated against the dollar amid rising demand for the US currency during the week, ended on June 29, 2019. The rupee lost Rs about Rs 3 against the dollar for buying and selling at Rs 159.75 and Rs 160.25.
INTER-BANK MARKET RATES: OPEN MARKET RATES: In line with the inter-bank market trend, the rupee also fell sharply in terms of the dollar for buying and selling at Rs 159.50 and Rs 161.00. The rupee dropped in relation to the euro for buying and selling at Rs 179.00 and Rs 182.00. Commenting on the rupee's fall versus the dollar, marketmen said that it is most probably, the rupee may recover slightly in the coming days.
INTER-BANK MARKET RATES: On Monday, the rupee did not show any significant change versus the dollar for buying and selling at Rs 156.99 and Rs 157.00. On Tuesday, the rupee shed about 15 paisas versus the dollar for buying and selling at Rs 156.98 and Rs 157.00.
On Wednesday, the rupee dropped about Rs 5 for buying and selling at Rs 162.00 and Rs 162.25.On Thursday, the rupee lost about Rs 2.00 for buying and selling at Rs 164.00 and Rs 164.25. On Friday, the rupee picked up Rs 4.25 against the dollar for buying and selling at Rs 159.75 and Rs 160.25.
OPEN MARKET RATES: On June 24, the rupee was also inert in terms of the dollar for buying and selling at Rs 156.00 and Rs 156.70. While, the rupee moved little in relation to the euro for buying and selling at Rs 177.00 and Rs 179.00.
On June 25, the rupee dropped 30 paisas in terms of the dollar for buying at Rs 156.00 while it showed no change for selling Rs 156.70, they said. While, the rupee fell in relation to the euro for buying and selling at Rs 176.80 and Rs 179.00, they said.
On June 26, the rupee also shed 50 paisas in terms of the dollar for buying and selling at Rs 162.50 and Rs 163.50. The rupee was down by Re.one in relation to the euro for buying at Rs 183.50 and it also fell by Rs 2 for selling Rs 186.50, they said.
On June 27, the rupee lost approximately same amount in terms of the dollar for buying and selling at Rs 162.00 and Rs 163.00. While, the rupee fell sharply in relation to the euro for buying and selling at Rs 182.50 and Rs 184.50.
On June 28, the rupee also gained Rs 3 in terms of the dollar for buying and selling at Rs 159.50 and Rs 161.00, they said. The rupee rose by Rs 5 in relation to the euro for buying and selling at Rs 178.00 and Rs 182.50, they said.
On June 29, the rupee managed to recover sharply versus the dollar on the money market on Friday in process of trading activity, marketmen said.
On June 30, the rupee held the overnight levels in terms of the dollar for buying and selling at Rs 159.50 and Rs 161.00 respectively, they said. The rupee fell in relation to the euro for buying and selling at Rs 179.00 and Rs 182.00 respectively, they said.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the euro rose to a three-month high against the dollar on Monday, as bearish bets on the US currency remained solid on prospects of a near-term interest rate cut by the Federal Reserve. The euro stretched its rally last week, up 1.4%, and advanced about 0.15% to $1.1386 in early Asian trade, its highest since March 22.
The dollar index versus a basket of six major currencies was a shade lower at 96.135, having struck 96.093 on Friday, its lowest since March 21, after the Fed last week opened the door for a potential rate cut as early as next month.
The dollar was trading against the Indian rupee at Rs 69.570, the greenback was at 6.876 in terms of the Malaysian ringgit and the US currency was at 6.8675 versus the Chinese yuan.
In the second Asian trade, the dollar on Tuesday remained shackled by the prospects of monetary easing by the Federal Reserve while the safe-haven Swiss franc and gold were supported by simmering tensions between Washington and Tehran.
The euro hit a three-month high of $1.14065 in early Asia trade. It has gained 2.0% from a two-week low of $1.1181 touched a week ago as the dollar has lost steam.
The dollar was on the defensive against the yen at 107.35 yen, a tad above Friday's five-month low of 107.045. The US currency's index against a basket of six major rivals fell to its lowest level in three months to 95.953, having lost 1.7% over the past week.
The dollar was trading against the Indian rupee at Rs 69.248, the greenback was at 4.142 versus the Malaysian ringgit and the US currency was available at 6.882 in terms of the Chinese yuan. In the third Asian trade, the dollar edged up from a three-month low on Wednesday, as investors dialled back expectations for aggressive US rate cuts next month but broader conviction the Federal Reserve will need to ease policy soon capped greenback gains.
The dollar was trading against the Indian rupee at Rs 69.430, the greenback was at 4.150 in terms of the Malaysian ringgit and the US currency was available at 6.890 versus the Chinese yuan. In the fourth Asian trade, the dollar hovered near a one-week high against the yen on Thursday, propped up by hopes of Sino-US trade talk progress though investors were nonetheless cautious ahead of a meeting between leaders of the two powers in Japan in days ahead.
The dollar index against a basket of six major currencies was a touch lower at 96.196 after rising modestly the previous day.
The index had retreated to a three-month low of 95.843 at the start of the week amid the Fed's easing prospects. But it has managed to regain some traction after comments this week from central bank officials such as Chair Jerome Powell that tapered aggressive rate cut expectations.
The dollar was trading against the Indian rupee at Rs 69.233, the greenback was at 4.150 versus the Malaysian ringgit and US currency was at 6.879 in relation to the Chinese yuan.
In the final Asian trade, the dollar trod water early on Friday as investors awaited a crucial meeting between the leaders of the United States and China at a Group of 20 summit over the weekend for any signs of progress to end their heated trade war.
The dollar traded at 107.66 yen, little changed on the day but on course for a 0.3% gain this week as the greenback mounted a recovery from a five-month low of 106.77 yen reached on Tuesday.
The dollar index, which measures the US currency against six of its peers, was at 96.217, unchanged on the week. The dollar was trading against the Indian rupee at Rs 68.983, the greenback was at 4.141 versus the Malaysian ringgit and the US currency was at 6.874 in terms of the Chinese yuan.
In the final European trade, the euro stabilised on Friday but was on track for its biggest monthly gain in 17 months as traders questioned how much firepower the European Central bank could potentially roll out to support a struggling economy and boost inflation.
June data at 1000 GMT is expected to show monthly euro zone inflation of 1.2% - well short of the ECB's target of just under 2%. Policymakers have promised more stimulus if needed but some investors are sceptical.
In comparison, policy interest rates in Europe are already in negative territory and Europe's most widely watched measure of inflation expectations - the five-year, five-year forward rate - has started declining again. Against the dollar, the single currency edged 0.1 percent higher at $1.1384. On a monthly basis, the single currency was set to weaken 1.6%, its biggest monthly rise.
The dollar index, which measures the US currency against six of its peers, was at 96.217, unchanged on the week.