The rupee managed to gain sharply against the dollar on the money market, during the week, ended on July 28, 2018. The rupee recovered 60 paisas in terms of the dollar for buying and selling at 127.80 and Rs 127.90.
INTER-BANK MARKTE RATES: OPEN MARKET RATES: The rupee rose by around Rs 6 in terms of the dollar for buying and selling at Rs 124.00 and Rs 126.00, they said. The rupee fell in relation to the euro for buying and selling at Rs 132.80 and Rs 147.00, they said.
INTER-BANK MARKET RATES: On Monday, the rupee was almost unchanged in terms of the dollar for buying and selling at 128.49 and Rs 128.50, they added. On Tuesday, the rupee gained 17 paisas against the dollar for buying and selling at Rs 128.32 and Rs 128.34.On Wednesday, all commercial centres were closed due to general election 2018 in the country. On Thursday, the rupee gained 17 paisas in terms of the dollar for buying and selling at 128.32 and Rs 128.34. On Friday, the rupee gained 30 paisas in terms of the dollar for buying and selling at 127.80 and Rs 127.90.
OPEN MARKET RATES: On July 23, the rupee declined by 10 paisas in terms of the dollar for buying and selling at Rs 130.30 and Rs 130.80, they said. The rupee lost sharply against the euro for buying and selling at Rs 149.80 and Rs 152.30, they said.
On July 24, the rupee managed to recover 80 paisas against the dollar for buying and selling at Rs 129.50 and Rs 130.00, they said. The rupee picked up Rs 1.80 versus the euro for buying and selling at Rs 148.00 and Rs 150.50, they said.
On July 25, the markets were closed due to elections.
On July 26, the rupee picked up 50 paisas against the dollar for buying and selling at Rs 129.00 and Rs 129.30, they said. While, the rupee did not show any change versus the euro for buying and selling at Rs 148.00 and Rs 150.50.
On July 27, the rupee gained Rs 3.50 against the dollar for buying and selling at Rs 126.50 and Rs 127.50. On July 28, the rupee rose by Rs 1.50 in terms of the dollar for buying and selling at Rs 124.00 and Rs 126.00, they said. The rupee fell in relation to the euro for buying and selling at Rs 132.80 and Rs 147.00, they said.
Commenting on the rupee's performance marketmen said that the rupee which has hit the roof, after losing around 20 percent versus the dollar, now just after the Election 2018, started recovering in terms of dollar.
Last week, the rupee recovered sharply against the dollar as a result of measures by the State Bank of Pakistan (SBP), dealers said. Recently, the central bank has tightened currency movement of dollar and the rupee within the country after grey listing of Pakistan by the Financial Action Task Force (FATF). After the implementation of the SBP's measures, the national currency improved against the dollar.
Commenting on the fresh recovery in the value of the rupee, president, Forex Association of Pakistan (FAP) Malik Bostan said that following the measures taken by the State Bank of Pakistan (SBP), the rupee started recovering versus the dollar. One of the leading factors are, absence of the illegal money changers, who were away from the market, he said and adding that this factor helped the rupee to recover it's losses in the terms of the dollar.
Since the central bank has taken, cautionary steps we are provided over 2 million dollars to the inter-bank and hopefully, amount will increase in the coming days, he said.
It looks that under the fears of further slide in the value of the dollar, people may come to sell to dollars instead of purchasing, he said. The big challenging job in front of new government is how to tackle the issue of 18 billion dollars Current Account Deficit, hopefully, positive developments would emerge with the passage of time, he said. Besides, speech of Chairman of the Pakistan Tehreek-e-Insaf (PTI), Imran Khan, was also an important reason which gives a boost to the rupee, he added. Whereas, the people of Pakistan, particularly, business community is expecting country's economic condition will improve in the coming days, other experts said.
One of the most important issues is to bring back the country from the grey list, they said and adding that country has to follow the guidelines to come out of the grey list.
Commenting on the persistency in the upward journey of the rupee, president, Forex Association of Pakistan (FAP) Malik Bostan said that the rupee to recover more gourd under the umbrella of cautious strategy of the State Bank of Pakistan (SBP) in days to come.
He said that we are short of cash because people were under pressure due to dip in the dollar's rates. The next direction of the market will settle on Monday, he observed. The rupee to go up further versus the dollar due to rising expectations from the better outcome of Amnesty scheme and measures, other experts said.
Market received an approximately 5-6 million dollars export proceeds, they said and adding that we have to cut down dependence on import products to bring stability in the country.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the dollar slumped against major peers on Monday, knocked lower by US President Donald Trump's comments on the greenback's strength while the yen spiked on reports Japan's central bank is debating moves to reduce its massive monetary stimulus.
The dollar index, a measure of its value against a basket of six major currencies, was down 0.1 percent at 94.327 on Monday, slipping further from a one-year high of 95.656 touched on July 19. The dollar was trading against the Indian rupee at Rs 68.738, the greenback was at 4.054 in terms of the Malaysian ringgit and the US currency was available at 6.760 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Monday: 83.75-83.75 (Previous 83.75-83.75).
In the second Asian trade, the dollar ticked up slightly on Tuesday, adding to gains made in overnight trade after US Treasury yields rose on expectations the Federal Reserve would persist with its rate hikes this year.
The dollar index, a measure of the currency against a basket of six rivals, edged 0.05 percent higher at 94.707 on Tuesday compared to the previous day. Inter bank buy/sell rates for the taka against the dollar on Tuesday: 83.75-83.75 (Previous 83.75-83.75).
In the third Asian trade: the dollar and euro held tight ranges on Wednesday, ahead of a meeting between US President Donald Trump and European Commission President Jean-Claude Juncker as investor focus shifted to the trade rift between the two economic powers.
The dollar index against a basket of major currencies stood little changed at 94.555, off its two-week low of 94.207 hit on Monday. The dollar was trading against the Indian rupee at Rs 68.815, the US currency was at 4.060 in terms of the Malaysian ringgit and the greenback was at 6.796 versus the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Wednesday: 83.75-83.75 (Previous 83.75-83.75). In the fourth Asian trade, the dollar slipped on Thursday and the euro edged higher, as immediate concerns about global trade tensions ebbed after the United States and the European Union agreed to begin talks to lower tariffs.
The dollar was trading against the Indian rupee at Rs 68.703, the US currency was at 4.058 in terms of the Malaysian ringgit and the greenback was at 6.783 in relation to the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Thursday: 83.75-83.75 (Previous 83.75-83.75).
In the final Asian trade, the dollar rose on Friday to its highest level in five days as investors waited to see if US economic growth figures do anything to interrupt its months of strength. US President Donald Trump has expressed displeasure over the dollar's strength, ignoring a custom that US leaders avoid openly interfering in financial markets. But the currency has stuck stubbornly close to a one-year peak scaled last week. On Friday the dollar climbed further, gaining 0.4 percent overnight against a basket of its peers to reach 94.796, a five-day high, before trading flat.
The dollar was trading against the Indian rupee at Rs 68.553, the greenback was available versus the Malaysian ringgit at 4.062 and the US currency was at 6.803 in relation to the Chinese yuan. In the final US trade, the dollar slipped against a basket of currencies on Friday as data showing the US economy rang up its strongest quarter in nearly four years failed to erase worries that trade frictions would be a drag in the second half of 2018.
The euro stabilized following its biggest one-day loss in a month in reaction to the European Central Bank on Thursday reaffirming its plan to slowly end its accommodative monetary policy.