THE RUPEE: divergent trends

03 Aug, 2018

Mixed patterns were witnessed on the money market on Thursday as the rupee moved both ways against the dollar on Thursday, dealers said. The rupee depreciated by 15 paisas in terms of the dollar for buying at Rs 124.05 and 10 paisas for selling Rs 124.10, they added.
In the fourth Asian trade, the US dollar held on to gains against a basket of its peers on Thursday, after the Federal Reserve gave an upbeat assessment of the world's biggest economy and stayed on course to gradually lift interest rates.
The dollar was already well bid by concerns about a further escalation in the Sino-US trade dispute and higher US Treasury yields.
After ending its two-day policy meeting, the Fed kept interest rates unchanged as widely expected, and said US economic growth has been rising strongly and the job market has continued to strengthen.
"The Fed delivered rather hawkish comments in the statement emphasizing the strength of the US economy," said Osamu Takashima, head of G10 FX strategy, at Citigroup Global Markets Japan.
"There was no big surprise in last night's statement, but the overall tone was a little bit stronger than last one."
The dollar index, which measures the greenback against a basket of six currencies, was a shade higher on Thursday compared to the previous day to trade at 94.700, well off a 3-1/2-week low of 94.084 hit last week.
Global financial markets remained focused on the US-driven international trade war, with US administration officials saying on Wednesday that President Donald Trump is proposing a higher 25 percent tariff on $200 billion worth of Chinese imports.
The dollar was trading against the Indian rupee at Rs 68.400, the greenback was at 4.070 in terms of the Malaysian ringgit and the US currency was available at 6.818 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).



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Open Bid Rs.122.50
Open Offer Rs.123.50
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Bid Rate Rs.124.05
Offer Rate Rs.124.10
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According to currency dealers, the greenback commenced trading on its overnight closing of Rs 121.00 and Rs 123.50 as its buying and selling rates, respectively.
At the close, it further appreciated and ended higher for buying at Rs 122.50 whereas it stayed firmed for selling at Rs 123.50, they added.
Moreover, the local currency maintained downward trend for the third consecutive day versus the pound sterling. The pound's buying and selling rates further rose from Wednesday's closing of Rs 156.50 and Rs 158.00 to Rs 157.50 and Rs 158.80 respectively, they said.
The dollar opened at Rs 122 (buying) and Rs 122.10 (selling) against same overnight value. It closed at Rs 122 (buying) and Rs 122.10 (selling).

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