The rupee managed to hold present levels against the dollar on the local money market during the week, ended on March 07-03-2020.
INTER-BANK MARKET RATES: The rupee rose by 13 paisas versus the dollar for buying and selling at Rs 154.23 and Rs 154.25.
OPEN MARKET RATES: The rupee showed no change in terms of the dollar for buying and selling at Rs 154.00 and Rs 154.30. The rupee dropped against the euro for buying and selling at Rs 172.00 and Rs 174.00.
Commenting on the rupee's firm trend these days, marketment said that low but steady rise in the country's foreign exchange reserves helped to ease supply of dollars, which caused sustained firmness in the value of the rupee against the dollar.
INTER-BANK MARKET RATES: On Monday, the rupee was down by 10 paisas versus the dollar for buying and selling at Rs 154.36 and Rs 154.38.
On Tuesday, the rupee picked up eight paisas versus the dollar for buying and selling at Rs 154.27 and Rs 154.30.
On Wednesday, the rupee maintained rising trend in terms of the dollar for buying and selling at Rs 154.21 and Rs 154.23. On Thursday, the rupee shed six paisas versus the dollar for buying and selling at Rs 154.26 and Rs 154.29. On Friday, the rupee rose by three paisas versus the dollar for buying and selling at Rs 154.23 and Rs 154.25.
OPEN MARKET RATES: On March 2, the rupee depreciated in terms of the dollar for buying and selling at Rs 154.00 and Rs 154.30. The rupee fell sharply against the euro for buying and selling at Rs 169.70 and Rs 170.70.
On March 3, the rupee held the overnight levels in terms of the dollar for buying and selling at Rs 154.00 and Rs 154.30. The rupee shed 30 paisas against the euro for buying and selling at Rs 170.00 and Rs 171.50.
On March 4, the rupee did not move any side in terms of the dollar for buying and selling at Rs 154.00 and Rs 154.30. The rupee shed 30 paisas against the euro for buying and selling at Rs 170.30 and Rs 172.00.
On March 5, the rupee maintained overnight levels in terms of the dollar for buying and selling at Rs 154.00 and Rs 154.30. The rupee depreciated by 20 paisas against the euro for buying and selling at Rs 170.50 and Rs 172.20.
On March 6, the rupee sustained overnight levels in terms of the dollar for buying and selling at Rs 154.00 and Rs 154.30. The rupee fell sharply against the euro for buying and selling at Rs 172.80 and Rs 174.80.
On March 7, the rupee present levels in terms of the dollar for buying and selling at Rs 154.00 and Rs 154.30, they said. The rupee gained against the euro for buying and selling at Rs 172.00 and Rs 174.00.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the yen and the euro rose against the dollar on Monday on growing expectations that the US Federal Reserve will cut interest rates at its policy review this month to protect the economy from the rapid spread of the coronavirus.
As US shares were routed in recent days, Federal Reserve Chair Jerome Powell said on Friday the central bank will "act as appropriate" to support the economy in the face of risks posed by the coronavirus epidemic.
The dollar war trading against the Indian rupee at Rs 72.255, the greenback was at 4.200 in terms of the Malaysian ringgit and the US currency was at 6.971 versus the Chinese yuan.
In the second Asian trade, the safe-haven Japanese yen gained on the dollar on Tuesday, as the market tempered hopes for global monetary easing with worries about its scale and efficacy in combating the economic damage from the coronavirus outbreak.
The dollar fell 0.5% to 107.80 yen and edged lower on the Swiss franc to 0.9576 francs after Reuters reported, citing an unnamed G7 official, that the G7 draft statement had no fresh fiscal or monetary pledges.
The dollar was available against the Indian rupee at Rs 72.723, the greenback was at 4.204 in terms of the Malaysian ringgit and the US currency was trading versus the Chinese yuan at 6.971.
In the third Asian trade, the dollar fell to a five-month low versus the yen after an emergency 50 basis point cut in interest rates by the US Federal Reserve was deemed insufficient to offset downside risks posed by the global spread of the coronavirus.
The dollar was trading against the Indian rupee at Rs 73.345, the greenback was available at 4.182 in terms of the Malaysian ringgtit and US currency was at 6.933 versus the Chinese yuan.
In the fourth Asian trade, the dollar found its footing on Thursday as upbeat jobs data helped it recoup a little of its slide against the euro and it steadied on the yen after the US Federal Reserve's surprise rate cut.
A dollar last bought 107.61 yen. An emergency 50 basis point interest rate cut by the Fed on Tuesday had sent the dollar to a five-month low of 106.84 yen.
The dollar was available against the Indian rupee at Rs 73.420, the greenback was at 4.164 versus the Malaysian ringgit and the US dollar was at 6.937 versus the Chinese yuan.
In the final Asian trade, the dollar nursed savage losses against the yen and euro on Friday as a plunge in US yields to record lows wiped out the currency's single greatest attraction for investors - higher interest rates.
Mounting fears over the fallout from the coronavirus has driven a truly tectonic shift in expectations for US rates as markets wager the Federal Reserve will have to cut rates by 50 basis points for a second time this month.
The resulting collapse in Treasury yields - which fell another 10 basis points in Asia - has been the death of one of the most popular carry trades globally - borrowing at negative rates in the euro and yen to buy US assets.
The dollar was trading against the Indian rupee at Rs 73.790, the greenback was at 4.185 versus the Malaysian ringgit and the US currency was at 6.957 in terms of the Chinese yuan.
In the final US trade, the dollar fell across the board on Friday, posting its biggest weekly loss in four years, as a sharp drop in US government bond yields hurt the greenback's appeal.
The dollar index, which measures the greenback's strength against a basket of six major currencies, was about 0.7% lower at 95.995, after slipping to a 13-month low of 95.701. For the week, the index was down 2.2%, its biggest weekly decline since early May, 2016.
Worries about the outbreak have left market fundamentals in the dust, and the 10-year note yield 10YT=RR sank to a record low. That is wiping out the yield advantage that had fuelled a popular carry globally - borrowing at negative rates in the euro and yen to buy US assets. Markets now bet the Fed will again cut rates by 50 basis points this month.
The euro was about 0.7% higher at an eight-month high of 1.1311. Against the Japanese yen, the dollar was down 0.6% at 105.49 yen, a more than six-month low.
Currency volatility gauges rose on Friday, with one-month euro-dollar implied volatility reaching its highest since November 2018.
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