Minor changes were seen on the money market as the rupee depicted marginal variations versus the dollar during the week, ended September 23, 2017. In the inter-bank market, the rupee showed slight variation in relation to the dollar for buying and selling at Rs 105.40 and Rs 105.42. In the open market, the rupee slipped by 10 paisas against the dollar for buying and selling at Rs 105.80 and Rs 106.00. The rupee was lower by 30 paisa in terms of the euro for buying and selling at Rs 125.75 and Rs 127.00.
Some experts said that by and large, the rupee managed to retain overnight levels against the dollar due to easy supply of dollar. The rupee may not move sharply in terms of the dollar in the coming day, they added.
OPEN MARKET RATES: On Monday, the rupee drifted lower by 10 paisas in relation to the dollar for buying and selling at Rs 105.70 and Rs 105.90. The rupee also lost 40 paisas in terms of the euro for buying and selling at Rs 125.40 Rs 126.70.
On Tuesday, the rupee lost further 10 paisas in relation to the dollar for buying and selling at Rs 105.80 and Rs 106.00 respectively, they said. The rupee also drifted lower by 35 paisas in terms of the euro for buying and selling at Rs 125.75 and Rs 1270.00 respectively, they said.
On Thursday, the rupee showed no change in relation to the dollar for buying and selling at Rs 105.90 and Rs 106.10. The rupee was trading against the euro for buying and selling at Rs 125.00 and Rs 126.25. On Friday, the rupee gained 10 paisas against the dollar for buying and selling at Rs 105.80 and Rs 106.00. The rupee lost 80 paisas in terms of the euro for buying and selling at Rs 125.80 and Rs 127.30, respectively. On Saturday, the rupee was unchanged versus the dollar for buying and selling at Rs 105.80 and Rs 106.00. The rupee moved marginally in relation to the euro for buying and selling at Rs 125.75 and Rs 127.00.
INTER-BANK MARKET RATE: The rupee moved cautiously versus the dollar during the week for buying and selling at Rs 105.40 and Rs 105.42.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the dollar held firm near a seven-week high versus the yen, supported by recent rises in US yields, while sterling took a breather after surging last week on growing expectations that the Bank of England could raise interest rates soon.
The dollar rose 0.3 percent to 111.19 yen, trading within sight of Friday's peak at 111.33 yen, the dollar's highest level since late July. The dollar gained nearly 2.8 percent against the yen last week, buoyed by a rise in US Treasury yields that bolstered the greenback's appeal, and as data showing a pick up in US consumer prices helped rekindle expectations that the Federal Reserve could raise interest rates again in December.
The dollar was available against the Indian rupee at Rs 64.015, the greenback was trading versus the Malaysian ringgit at Rs 4.183 and the US currency was at 6.549 in terms of the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Monday.80.75-80.75 (previous 80.73-80.73).
In the second, the dollar held steady at near 8-week highs versus the yen on Tuesday, with investors awaiting the Federal Reserve's policy statement this week for fresh hints on the possible pace and timing of further US monetary tightening. The dollar last changed hands at 111.52 yen, trading within sight of Monday's peak of 111.665 yen, its highest level since July 27. The greenback has benefited from a recent surge in US bond yields. The US 10-year Treasury yield had reached a one-month high of 2.237 percent on Monday.
The dollar was trading against the Indian rupee at Rs 64.150, the US currency was available versus the Malaysian ringgit at 4.189 and the greenback was at 6.589 in terms of the Chinese yuan. In third trading day, the dollar rose broadly, hitting a two-month high versus the yen, as the Federal Reserve signalled it may raise interest rates for a third time this year even as inflation has remained below its 2 percent goal.
The US central bank also said after a two-day meeting it will begin reduction of the Fed's $4.5 trillion balance sheet in October by allowing small amounts of Treasuries and mortgage-backed securities to run off. "Right now, the market sees the Fed more hawkish than anticipated," said Tim Alt, director of currencies and rates at Aviva Investors.
Some traders had thought catastrophic damage from Hurricanes Harvey and Irma in Texas and Florida might force the Fed to postpone a rate increase until next year. In the fourth Asian trade, the dollar rose to a two-month high against the yen and extended its gains against the euro after a hawkish-sounding Federal Reserve heightened expectations for an interest rate hike in December.
After concluding a closely watched two-day policy meeting on Wednesday, the Fed left interest rates unchanged as expected but signalled it still expects one more increase by the end of the year, despite a recent bout of low inflation. The euro shed 0.1 percent to $1.1886 after dropping 0.8 percent the previous day, when it reversed a four-session winning run.
The dollar was 0.2 percent higher at 112.430 yen after brushing 112.645, its highest since July 18. Still, the greenback's gains against the yen were assessed as relatively limited. The dollar was trading against the Indian rupee at Rs 64.460, the greenback was at 4.200 versus the Malaysian ringgit and the US currency was at 6.591 in terms of the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Thursday: 80.78-80.79 (previous 80.77-80.77).
In the final Asian trade, the dollar buckled as tensions simmered on the Korean peninsula, though the sharp divergence between US and Japanese monetary policy kept the greenback on track for a winning week against the yen. The dollar index, which tracks the US unit against a basket of six major rivals, fell 0.3 percent to 92.024, still up 0.2 percent for the week and holding well above its more than 2-1/2 year nadir of 91.011 marked on September 8.
The rupee was trading against the Indian rupee at Rs 64.985, the greenback was at 4.196 in terms of the Malaysian ringgit and the US currency was at 6.588 versus the Chinese yuan. At the week-end, the dollar weakened against the yen, with tensions simmering on the Korean peninsula and as the boost from heightened expectations of a US interest rate hike in December faded.
The dollar was down 0.42 percent at 111.99 yen, on pace to snap a five-day winning streak against the Japanese currency. North Korea said on Friday it might test a hydrogen bomb over the dollar scaled a two-month peak of 112.71 yen on Thursday after the Bank of Japan maintained its bond-buying pledge. The move also was spurred by the Federal Reserve's policy statement on Wednesday in which it signalled it still intended to raise rates in December. The dollar index, which tracks the greenback against six major currencies, was down 0.13 percent to 92.136.