The rupee moved both ways against the dollar on the money market during the week, ended on August 10, 2019.
INTER-BANK MARKET RATES: The rupee managed to gain versus the dollar for buying and selling at Rs 158.43 and Rs 158.47, they said.
OPEN MARKET RATES: The rupee, however, shed 70 paisas in relation to the dollar for buying and selling Rs 158.50 and Rs 159.50. The rupee was trading against the euro for buying at Rs 175.00 while, the local currency sustained overnight level for selling at Rs 177.50.
Commenting on the rising trend in the rupee's value, marketment said that in the absence of major payment, the local currency got strength versus the dollar in the opening ssession, in the meantime, the rupee shed some gains during the closing sessions of the week.
INTER-BANK MARKET RATES: On Monday, the rupee picked up 20 paisas versus the dollar for buying and selling at Rs 158.90 and Rs 159.00. On Tuesday, the rupee rose by 30 paisas versus the dollar for buying and selling at Rs 158.65 and Rs 158.70. On Wednesday, the rupee moved little versus the dollar for buying and selling at Rs 158.25 and Rs 158.30. On Thursday, the rupee rose by 30 paisas versus the dollar for buying and selling at Rs 158.20 and Rs 158.30.
On Friday, the rupee depreciated by 18 paisas versus the dollar for buying and selling at Rs 158.43 and Rs 158.47, they said.
OPEN MARKET RATES: On Aug 5, the rupee rose by 40 paisas in terms of the dollar for buying and selling Rs 157.80 and Rs 158.80. The rupee did not show any change against the euro for buying and selling at Rs 174.50 and Rs 176.50.
On Aug 6, the rupee picked up 10 paisas in terms of the dollar for buying and selling Rs 157.70 and Rs 158.70. The rupee however, shed 50 paisas against the euro for buying and selling at Rs 175.00 and Rs 177.50.
On Aug 7, the rupee rose by 20 paisas in terms of the dollar for buying and selling Rs 157.50 and Rs 158.50. The rupee gained 50 paisas against the euro for buying and selling at Rs 174.50 and Rs 177.00, they said. On Aug 8, the rupee picked up 10 paisas in terms of the dollar for buying and selling Rs 157.40 and Rs 158.40. The rupee did not show any change against the euro for buying and selling at Rs 174.50 and Rs 177.00.
On Aug 9, the rupee fell sharply in relation to the dollar, dropping 90 paisas for buying and selling Rs 158.30 and Rs 159.30. The rupee also depreciated against the euro for buying and selling at Rs 175.50 and Rs 177.50. ON Aug 10, the rupee shed 20 paisas in relation to the dollar for buying and selling Rs 158.50 and Rs 159.50, dealers said. The rupee, however, appreciated against the euro, picking up 50 paisas for buying at Rs 175.00 while, the local currency sustained overnight level for selling at Rs 177.50, they said.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, China's yuan tumbled more than 1% on Monday to 11-year lows on mounting fears over a sharp escalation in the US-China trade war, sparking a sell-off in other currencies in the region. The broadening fallout of the trade dispute saw investors rushing into perceived safe-haven assets, with the Japanese yen rising to a seven-month peak.
The yuan broke through 7 per dollar, which some market players have regarded as a major support level, falling to as low as 7.1097 per dollar in offshore trade and 7.0424 to the dollar onshore. "This could well be the biggest moment for the yuan this year. The impact of US-China trade is turning out to be very big," said Masashi Hashimoto, senior currency analyst at MUFG Bank.
The dollar was trading against the Indian rupee at Rs 70.425, the greenback was at 4.173 in terms of the Malaysian ringgit and the US currency was available at 7.029 versus the Chinese yuan. In the second Asian trade, the offshore yuan pulled back from an all-time low on Tuesday after Beijing appeared to take steps to prevent the currency from weakening further, following a sharp drop that prompted the US government to declare China was manipulating its currency.
The yen erased gains versus the dollar and fell against most major currencies, while the dollar index against major peers remained on the backfoot after Monday's rapid escalation in tensions pushed the US-China trade war into uncharted territory. China said early on Tuesday it was selling yuan-denominated bills in Hong Kong, in a move seen as curtailing short selling of the currency.
It also set a daily mid-point for onshore trade that was slightly firmer than markets had expected, though it was still the weakest level since May 2008. However, the dollar remained down against the euro, while US stock futures fell on worries the trade conflict with China would hurt US economic growth and corporate profits.
The dollar was trading against the Indian rupee at Rs 70.620, the US currency was at 4.185 in terms of the Malaysian ringgit and the greenback was available at 7.047 versus the Chinese yuan. In the third Asian trade, the dollar fell against the yen as Japanese stocks opened lower on Wednesday in a sign markets remain nervous about US-China trade frictions following major foreign exchange volatility in the previous session.
Traders await China's central bank fixing for the onshore yuan later on Wednesday and currencies are expected to remain stable, provided there is no fresh exchange of policy or rhetorical shots between Beijing and Washington. The dollar index, which measures the greenback against six major currencies, rose 0.37% to 97.581.
The dollar was trading against the Indian rupee at Rs 70.810, the greenback was at 4.187 in terms of the Malaysian ringgit and the US currency was at 7.033 versus the Chinese yuan. In the fourth Asian trade, the yen was supported on Thursday, after global central banks startled markets with heavy rate cuts and threats of more to come as world economic risks grow, boosting the appeal of the safe-haven Japanese currency.
The New Zealand and Australian dollars clawed back some of their heavy losses from the previous session, although analysts said their longer term outlook remained bleak. The dollar index against a basket of six major currencies stood little changed at 97.537 after dipping 0.1% overnight.
The index rose to a 27-month high of 98.932 just a week ago after Fed Chairman Jerome Powell ruled out lengthy monetary easing, but it has since declined sharply on resurgent prospects of more rate cuts. The dollar was trading against the Indian rupee at Rs 70.840, the greenback was at 4.182 versus the Malaysian ringgit and the US currency was at 7.044 in relation to the Chinese yuan.
In the final Asian trade, the yen traded near an eight month high versus the dollar on Friday as renewed concerns about the US-China trade dispute and signs that central banks are more worried about the global economy boosted safe-haven assets. The yen, which tends to be bought in times of economic uncertainty, was on course for its second weekly gain versus the greenback and its third weekly gain versus both the Australian and New Zealand dollars.
The dollar was little changed at 105.98 yen, on course for its second weekly decline. On Wednesday, the dollar slumped to 105.50 yen, the lowest since the January flash crash. A break of this level suggests a move to 105.00 yen, analysts said. The dollar index, which measures the greenback versus a basket of six major currencies, was little changed at 97.548 but on course for its biggest weekly decline since June 21.
The dollar was trading against the Indian rupee at Rs 70.515, the greenback was at 4.186 in terms of the Malaysian ringgit and the US currency was available at 7.050 versus the Chinese yuan. In the final US trade, the yen and Swiss franc gained on Friday, as investors sought the safe-haven currencies due to nagging US-China trade war jitters, renewed political uncertainty in Italy and weak economic data around the world.
Deep liquidity and current account surpluses in Japan and Switzerland attract safe-haven flows to those currencies during times of geopolitical and economic stress. The dollar index dipped 0.1% slipped to 97.545 and remained on course for its biggest weekly decline since June 21. Sterling fell 0.5% to $1.2075 against the dollar and 0.7% versus the euro, which rose to 92.74 pence, after the UK's weak data.
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