Slight gains

Steadier trend was witnessed on the currency market on Saturday as the rupee managed to hold it's present levels during the week, ended on 08 February 2020. According to the market sources, the rupee on the back of availability of dollar, managed to hold present levels against the US currency. They were hoping that rates of dollar will not fluctuate sharply due to balanced demand and supply.

Country's foreign exchange reserves picked up at 12.274 billion dollars, high payment bills causing decline in the foreign exchange reserves.

INTER-BANK MARKET RATES: The rupee picked up 12 paisas versus the dollar for buying and selling at Rs 154.38 and Rs 154.42.

OPEN MARKET RATES: The rupee was inert in relation to the dollar for buying and selling at Rs 154.30 and Rs 154.60. While, the rupee gained sharply in terms of the euro for buying and selling at Rs 168.30 and Rs 170.00.

INTER-BANK MARKET RATES: On Monday, the rupee shed two paisas versus the dollar for buying and selling at Rs 154.50 and Rs 154.52. On Tuesday, the rupee picked up nine paisas versus the dollar for buying and selling at Rs 154.41 and Rs 154.43.

On Thursday, the rupee shed seven paisas versus the dollar for buying and selling at Rs 154.48 and Rs 154.50. On Friday, the rupee shrugged of overnight weakness versus the dollar, picking up 10 paisas for buying and selling at Rs 154.38 and Rs 154.42.

OPEN MARKET RATES: On Feb 3, the rupee maintained overnight levels in relation to the dollar for buying and selling at Rs 154.30 and Rs 154.60., the rupee gained 10 paisas in terms of the euro for buying and selling at Rs 170.00 and Rs 171.50. On Feb 4, the rupee held the overnight levels in relation to the dollar for buying and selling at Rs 154.30 and Rs 154.60 respectively, they said. The rupee, however, gained 15 paisas in terms of the euro for buying and selling at Rs 170.20 and Rs 171.60.

On Feb 5, all commercial centres were closed owing to Kashmir Day holiday.

On Feb 6, the rupee sustained last levels in relation to the dollar for buying and selling at Rs 154.30 and Rs 154.60. While, the rupee gained 10 paisas in terms of the euro for buying and selling at Rs 169.00 and Rs 170.50.

On Feb 7, the rupee did not move any side in relation to the dollar for buying and selling at Rs 154.30 and Rs 154.60 respectively, they said. While, the rupee gained modestly in terms of the euro for buying and selling at Rs 168.40 and Rs 170.00 respectively, they said.

On Feb 8, the rupee was unmoved in relation to the dollar for buying and selling at Rs 154.30 and Rs 154.60. While, the rupee was almost inert in terms of the euro for buying and selling at Rs 168.30 and Rs 170.00.

OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the yuan and its proxy, the Australian dollar, were on the defensive on Monday as China's share market reopened with big losses after the Lunar New Year break and anxiety over a virus outbreak in the country kept investors on guard.

Chinese shares tumbled after the 10-day break was extended to help stem the epidemic though falls were in line with what had been indicated by Chinese share futures and ETFs (Exchange Traded Funds) traded outside China.

The currency is often regarded as a proxy to the yuan, being more freely traded and because of Australia's reliance on trade with China.

The dollar was available against the Indian rupee at Rs 71.578, the greenback was at 4.111 in terms of the Malaysian ringgit and the US currency was trading at 7.015 in relation to the Chinese yuan.

In the second Asian trade, the dollar held firm on Tuesday after a key US manufacturing survey showed a surprise recovery, while concerns about a widening coronavirus outbreak in China kept the yuan and the Australian dollar subdued.

The dollar index rose 0.44% on Monday, the biggest gain so far this year, and last stood at 97.802. It was boosted by a report from the Institute for Supply Management (ISM) reported that US factory activity unexpectedly rebounded in January after contracting for five straight months amid a surge in new orders.

Against the yen, the dollar traded at 108.62 yen, after a gain of 0.3% on Monday, the biggest gain in a downtrend that started in mid-January.

The euro stood at $1.1062, having slipped 0.3% on Monday. In Asia, coronavirus remained in focus as the number of cases and deaths showed little sign of slowdown.

The dollar was trading against the Indian rupee at Rs 71.198, the greenback was at 4.113 in terms of the Malaysian ringgit and the US currency was available at 6.998 versus the Chinese yuan.

In the fourth Asian trade, the US dollar stood tall on Thursday, supported by firm domestic data and hopes the coronavirus' economic impact could be limited, even as the human toll continued to climb.

Another 73 people on the Chinese mainland died on Wednesday from the outbreak, the highest daily increase so far, bringing the total death toll to 563.

Infections stand at 28,018. Drugmakers and the World Health Organization played down press reports about progress toward finding treatments, which had boosted traders' confidence.

Amid the uncertainty about the virus, currency investors also turned their attention to traditional market drivers, specifically US private payrolls, which posted their biggest jump in nearly four years, while a separate report showed a service sector pickup.

That helped the greenback higher and it drifted north in morning trade to a two-week high of 109.87 Japanese yen.

The dollar was trading against the Indian rupee at Rs 71.220, the greenback was at 4.117 in terms of the Malaysian ringgit and the US currency was available at 6.962 versus the Chinese yuan.

In the fourth Asian trade, the dollar traded near a two-week high versus the yen on Friday on upbeat US economy indicators ahead of key jobs data, but the spread of a new coronavirus in China remains a risk to financial markets.

The yuan held onto slim gains versus the dollar in offshore trade on hopes Chinese stimulus would lessen the economic impact of the epidemic, but the rising death toll has kept investors on edge.

Sterling traded near a six-week low against the greenback and nursed losses versus the euro, dogged by persistent worries about negotiations between Britain and the European union for a post-Brexit trade deal.

Recent improvement in US economic data has given some traders respite from concerns about the new virus, but these concerns are likely to loom large for weeks as investors asses the scale of the economic impact.

The dollar was trading against the Indian rupee at Rs 71.240, the greenback was at 4.133 in terms of the Malaysian ringgit and the US currency was available at 6.981 versus the Chinese yuan.

In the final US trade, the dollar fell against the safe-haven yen on Friday as nagging fears about the latest coronavirus that broke out in China a few weeks ago overshadowed an overall strong US non-farm payrolls report.

The yen rose after four straight days of selling that was spurred by investors being encouraged by the efforts from the Chinese government to contain the virus and limit its economic fallout.

The dollar, however, barely budged against the yen after robust US non-farm payrolls numbers for January. The dollar index, which measures the currency against a basket of rivals, edged lower to 98.47.