THE RUPEE: Steady trend

The rupee managed to gain steeply against the dollar in the local currency market during the week, ended on August 24, 2019.
INTER-BANK MARKET RATES: The rupee recovered sharply in terms of the dollar for buying and selling at Rs 157.50 and Rs 157.60.
OPEN MARKET RATES: The rupee gained sharply in relation to the dollar for buying and selling at Rs 157.30 and Rs 157.80, dealers said. The rupee was trading against the euro for buying and selling at Rs 172.50 and Rs 174.75.
According to marketmen, as a result of decline in imports and slight rise in exports, country's BoP improved, it is an encouraging sign for country's ailing economy.
Other analysts said that the rupee may not fluctuate sharply versus the dollar in the near future
INTER-BANK MARKET RATES: On August 19, the rupee moved cautiously in terms of the dollar for buying and selling at Rs 158.60 and Rs 158.65, they said. On August 20, the rupee shed 10 paisas in terms of the dollar for buying and selling at Rs 158.70 and Rs 158.80. On August 21, the rupee gained versus the dollar for buying and selling at Rs 158.55 and Rs 158.58. On August 22, the rupee maintained overnight trend in terms of the dollar for buying and selling at Rs 158.23 and Rs 158.25.
On August 23, the rupee recovered about Re.one in terms of the dollar for buying and selling at Rs 157.50 and Rs 157.60.
OPEN MARKET RATES: On Monday, the rupee also picked up 20 paisas in relation to the dollar for buying and selling at Rs 158.50 and Rs 159.00, dealers said. The rupee also gained 20 paisas against the euro for buying and selling at Rs 174.50 and Rs 176.50. On Tuesday, the rupee maintained last levels in relation to the dollar for buying and selling at Rs 158.50 and Rs 159.00, dealers said. The rupee rose by Re.one against the euro for buying and selling at Rs 173.50 and Rs 175.50.
On Wednesday, the rupee was unchanged in relation to the dollar for buying and selling at Rs 158.50 and Rs 159.00.
On Thursday, the rupee picked up 30 paisas in re relation to the dollar for buying and selling 158.20 and Rs 158.70 respectively, they said. The national currency gained 80 paisas versus the euro for buying and selling Rs 173.20 and Rs 175.80.
On Friday, the rupee also gained around Re.one in relation to the dollar for buying and selling at Rs 157.30 and Rs 157.80, dealers said. The rupee picked up Rs 1.50 against the euro for buying and selling at Rs 172.50 and Rs 174.75, they said.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, safe-haven currencies such as the yen and Swiss franc were under pressure on Monday as expectations that policymakers would unleash new stimulus eased immediate concerns about a slowing global economy.
Such hopes found support from the Chinese central bank's interest rate reforms over the weekend that are expected to lower corporate borrowing costs, and reports of new fiscal stimulus in Germany.
However, investor optimism is likely to be capped ahead of a US decision later on Monday on whether to continue to allow China's
The dollar index, which measures the greenback against six major currencies, was marginally higher in Asia at 98.201, close to a two-week high of 98.339 reached on Friday.
The dollar was trading against the Indian rupee at Rs 71.228, the greenback was available at 4.166 versus the Malaysian ringgit and the US currency was at 7.047 in terms of the Chinese yuan.
In the second Asian trade, the dollar hovered near a three-week high on Tuesday, as expectations policymakers around the world would unleash fresh stimulus drove an improvement in appetite for riskier assets and lifted US government bond yields.
Yields on benchmark US Treasuries pulled away from three-year lows, helped in part by the prospect of Germany ditching its balanced budget rule to boost spending and on more economic support measures by China.
China's yuan was down 0.2% at 7.0661 per dollar in onshore trade against the broadly firmer greenback.
The yuan was also modestly pressured after the People's Bank of China (PBOC) set its new lending rate slightly lower. It was the first publication of the benchmark since the PBOC announced interest rate reforms over the weekend designed to lower corporate borrowing costs.
The dollar was available against the Indian rupee at Rs 71.580, the US currency was at 4.180 in terms of the Malaysian ringgit and the greenback was trading at 7.067 versus the Chinese yuan.
In the third Asian trade, the dollar was under pressure on Wednesday, elbowed off a three-week peak after a bounce in US yields stalled ahead of a global central bankers meeting, at which the Federal Reserve is expected to give clues on further rate cuts.
Officials from major central banks will gather at Jackson Hole, Wyoming, on Friday with markets focused on a scheduled speech by Fed Chair Jerome Powell.
His comments are of particular interest after last week's inversion of the US yield curve - widely regarded as a recession signal - boosted expectations the Fed would lower interest rates at its September policy meeting. Faced with rising risks to the US economy, the central bank in July cut rates for the first time since the financial crisis.
The dollar index against a basket of six major currencies was nearly flat at 98.232 after shedding 0.2% overnight.
The index had climbed to 98.450 on Tuesday, its highest since August 1, as US yields bounced from multi-year lows at the week's start on signs global policymakers were ready to step up stimulus support to stave off a steep economic downturn.
The dollar was trading against the Indian rupee at Rs 71.520, the greenback was at 4.171 versus the Malaysian ringgit and the US currency was available at 7.054 in terms of the Chinese yuan.
In the fourth Asian trade, the dollar held gains on Thursday after minutes from the Federal Reserve's last policy meeting hosed down some aggressive expectations the central bank would embark on a series of deep interest rate cuts.
Asian currencies are expected to trade in tight ranges on Thursday ahead of US Federal Reserve Chairman Jerome Powell's speech at Jackson Hole on Friday for signs of just how far the US central bank is prepared to lower rates.
The dollar was trading against the Indian rupee at Rs 71.560, the greenback was at 4.175 versus the Malaysian ringgit and the US currency was available at 7.068 in terms of the Chinese yuan.
In the final Asian trade, the dollar held firm in Asia on Friday on expectations Federal Reserve Chairman Jerome Powell will, in a pivotal speech, stick with his message that the US central bank has not entered a prolonged monetary easing cycle.
The greenback hit another 11-year high versus the Chinese yuan on Friday.
The New Zealand dollar jumped from a three and-a-half-year low after the Pacific nation's central bank chief said he was "pleased" with where interest rates were, hosing down expectations of more immediate rate cuts to follow this month's aggressive easing.
Powell gives the highly-awaited speech later Friday at a meeting of central bankers iPn Jackson Hole. Doubts about further easing emerged after two Fed officials said they saw no reason to cut interest rates again without new signs of economic weakness.
The dollar was trading against the Indian rupee at Rs 71.785, the US currency was at 4.188 versus the Malaysian ringgit and the greenback was available at 7.093 in terms of the Chinese yuan.
In the final Asian trade, dollar held firm on Friday on expectations Federal Reserve Chairman Jerome Powell will, in a pivotal speech, stick with his message that the US central bank has not entered a prolonged monetary easing cycle.
The greenback hit another 11-year high versus the Chinese yuan on Friday. The New Zealand dollar jumped from a three and-a-half-year low after the Pacific nation's central bank chief said he was "pleased" with where interest rates were, hosing down expectations of more immediate rate cuts to follow this month's aggressive easing.
Powell gives the highly-awaited speech later Friday at a meeting of central bankers in Jackson Hole. Doubts about further easing emerged after two Fed officials said they saw no reason to cut interest rates again without new signs of economic weakness.
The dollar was trading against the Indian ruee at Rs 71.785, the US currency was at 4.188 versus the Malaysian ringgit and the greenback was available at 7.093 in terms of the Chinese yuan.
In the final US trade, the dollar rose to a three-week high against the euro and a one-week peak versus the yen on Friday ahead of a speech from Federal Reserve Chair Jerome Powell, with investors expecting him to express some reluctance to embark on a long rate-cut cycle after a chorus of Fed officials voiced a similar sentiment.
Powell will address the Jackson Hole symposium of central bankers at 1400 GMT on Friday, and traders are waiting to see how closely he allies himself with the hawks within the Fed.
Currency markets have in recent months been driven by a shift at global central banks to looser monetary policy as economic demand slows and trade disputes intensify.
Expectations that the Fed will cut rates at its next meeting in September have been fully priced into interest rate futures, but the currency market is likely to react if Powell's comments do not match the dovish expectations. Money markets price in at least two rate cuts of 25 basis points this year.