On the back of slow demand for dollars, the rupee appreciated sharply against the dollar on the money market during the week, ended on October 12, 2019.
INTER-BANK MARKET RATES: The rupee gained sharply in terms of the dollar for buying and selling at Rs 156.06 and Rs 156.08.
OPEN MARKET RATES: The rupee gained modestly in relation to the dollar for buying and selling at Rs 155.80 and Rs 156.30.
While, the rupee was available versus the euro for buying and selling at Rs 171.00 and Rs 173.00.
Marketmen observed that the rupee managed to show it's muscles in terms of the dollar due to easy supply of dollars. Other experts said that the national currency may gained further ground versus the dollar in the coming days.
INTER-BANK MARKET RATES: On Monday, the rupee gained 20 paisas in terms of the dollar for buying and selling at Rs 156.40 and Rs 156.45. On Tuesday, the rupee shed fell modestly in terms of the dollar for buying and selling at Rs 156.45 and Rs 157.45. On Wednesday, the rupee gained modestly in terms of the dollar for buying and selling at Rs 156.30 and Rs 156.35. On Thursday, the rupee appreciated by 15 paisas in terms of the dollar for buying and selling at Rs 156.16 and Rs 156.20. On Friday, the rupee did not show any change in terms of the dollar for buying and selling at Rs 156.06 and Rs 156.08.
OPEN MARKET RATES: On October 7, the rupee shed 10 paisas in relation to the dollar for buying and selling at Rs 156.40 and Rs 156.90, they added. The rupee did not show any change versus the euro for buying and selling at Rs 171.50 and Rs 173.50. On October 8, the rupee rose by 30 paisas in relation to the dollar for buying and selling at Rs 156.10 and Rs 156.60.
The rupee sustained it's levels versus the euro for buying and selling at Rs 171.50 and Rs 173.50. On October 8, the rupee picked up 10 paisas in relation to the dollar for buying and selling at Rs 156.00 and Rs 156.50. The rupee gained 20 paisas versus the euro for buying and selling at Rs 171.30 and Rs 173.30.
On October 10, the rupee maintained rising trend, picking up 10 paisas in relation to the dollar for buying and selling at Rs 155.90 and Rs 156.40, they added.
The rupee, however, lost 40 paisas versus the euro for buying at Rs 171.70 while, it did not show move any side for selling at Rs 173.30, they added. On October 11, the rupee gained modestly in relation to the dollar for buying and selling at Rs 155.80 and Rs 156.30.
While, the rupee gained 80 paisas versus the euro for buying and selling at Rs 171.00 and Rs 173.00.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the yen gained slightly and the yuan slipped on Monday as investors nervously awaited US-China talks this week for signs of whether the two sides can de-escalate or end their punishing trade war.
Risk appetite soured noticeably after Bloomberg reported that Chinese officials are signalling they are increasingly reluctant to agree to a broad deal pursued by US President Donald Trump.
Deputy-level meetings will be held on Monday and Tuesday, with top-level talks scheduled for Thursday and Friday, when Chinese Vice Premier Liu He meets US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin in Washington.
The dollar was available against the Indian rupee at Rs 70.963 and the greenback was at 4.190 in terms of the Malaysian ringgit.
In the second Asian trade, the dollar found support on Tuesday while investors awaited the outcome from crucial Sino-US trade talks in Washington, with many staying cautious as neither side has shown signs of giving ground at the negotiations.
The Chinese yuan firmed in onshore and offshore trade as Chinese financial markets reopened after a week-long holiday.
The Australian and New Zealand dollars, whose fortunes are often linked with global trade, edged higher as some investors reduced bearish bets. Dealers warned this move could fade depending on the tone of the trade talks in Washington.
Hopes for a breakthrough are not high, but some investors are trying to scale back their positions, at least temporarily, because the outcome of the trade negotiations cannot be predicted.
The dollar was trading against the Indian rupee at Rs 4.188 and the greenback was at 7.123 in terms of the Malaysian ringgit.
In the third Asian trade, the dollar steadied on Wednesday as hopes for a breakthrough in U.S-China trade talks waned, sending investors into less risky assets, while the pound wallowed near a month low on deepening uncertainty over Brexit.
The US imposition of visa restrictions on Chinese officials, and the blacklisting of Chinese firms, over the treatment of Muslim minorities have cast a pall over trade discussions scheduled in Washington for the rest of the week.
The resulting risk aversion had bolstered the dollar overnight, which is seen as a safe-haven owing to its position as a global reserve currency.
The greenback rose slightly to 107.14 Japanese yen and was steady at $1.0962 on the euro. It was flat around 99.093 against a basket of major currencies.
The dollar was available against the Indian rupee at Rs 71.110, the greenback was at 4.196 in relation to the Malaysian ringgit and the US currency was at 7.142 in terms of the Chinese yuan.
In the fourth Asian trade, currencies whipsawed on Thursday as news suggesting division, then detente in Sino-US trade talks sparked volatility, with riskier Asian currencies ultimately rallying over a sinking dollar.
Investors, parsing headlines for any clues that tensions weighing on global growth could be resolved, turned from downcast to bullish after Bloomberg reported a currency pact could be part of a deal suspending further tariff hikes.
China's yuan, the most sensitive currency to the trade war, bounced to a two-week high from a month-low in offshore trade, gaining 0.3% by mid-session and pulling the trade-exposed Australian and New Zealand dollars up with it.
The dollar was trading against the Indian rupee at Rs 71.070, the greenback was at 4.191 versus the Malaysian ringgit and the US currency was available at 7.113 in terms of the Chinese yuan.
In the final Asian market, hopes of progress in US-China trade talks held down the dollar and lifted riskier currencies on Friday, while optimistic comments from Europe on Brexit boosted the British pound.
The greenback was a little weaker against the yuan and the Australian and New Zealand dollars as well as the euro, though movements were slight as caution tempered enthusiasm for risk.
Top US and Chinese negotiators wrapped up a first day of trade talks on Thursday, with US President Donald Trump describing the meetings as "very, very good negotiation with China".
The dollar was trading against the Indian rupee at Rs 71.028, the greenback was at 4.183 in terms of the Malaysian ringgit and the US currency was available at 7.107 versus the Chinese yuan.
In the final US trade, the dollar dropped to a three-month low on Friday as safe-haven buying eased and risk sentiment improved on hopes of progress in trade negotiations between the United States and China, as well as increased chances of an orderly British exit from the European Union.
Sterling rose to a more than three-month high versus the dollar on optimism about Brexit, while the euro advanced to a three-week peak as risk appetite rose.
At the same time, other safe-haven currencies such as the yen and Swiss franc slid on the day.
President Donald Trump and other US officials on Friday signalled good news was coming in trade talks with China, while Beijing indicated it was open to a "partial" deal that would avoid a planned hike in tariffs on its goods.
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