The rupee stabilised in terms of the dollar during the week, ended on November 3, 2018. The rupee showed slight changes versus the dollar for buying and selling at Rs 132.56 and Rs 132.58.
INTER-BANK MARKET RATES: OPEN MARKET RATES: The rupee gained Re one against the dollar for buying and selling at Rs 130.80 and Rs 131.50. The rupee managed to gain sharply in terms of the euro for buying and selling at Rs 147.80 and Rs 149.80. The rupee, somehow, managed to recover some lost ground in relation to the dollar due to slight improvement in supply of the greenback, marketmen said.
They expect that the local currency likely to show further strength versus the dollar in the coming days. Positive developments in both the political and economic fronts will help the rupee to stabilise against the dollar, they said.
INTER-BANK MARKET RATES: On Monday, the rupee shed 10 paisas versus the dollar for buying and selling at Rs 132.55 and Rs 132.60. On Tuesday, the rupee shed 5 paisas versus the dollar for buying at Rs 132.60 and it also lost 10 paisas for selling and Rs 132.70. On Wednesday, the rupee picked up 15 paisas versus the dollar for buying at Rs 132.45 and it also gained 22 paisas for selling and Rs 132.48. On Thursday, the rupee did not move any side versus the dollar for buying at Rs 132.45 and it slipped by two paisas for selling and Rs 132.50. On Friday, The rupee shed 11 paisas versus the dollar for buying at Rs 132.56 and it slipped by eight paisas for selling at Rs 132.58.
OPEN MARKET RATES: On October 29, the rupee lost 30 paisas against the dollar for buying at Rs 131.50 and it also fell by 80 paisas for selling at Rs 132.50, they said. The domestic currency, however gained 50 paisas in terms of the euro for buying at Rs 148.25 while it lost 50 paisas for selling at Rs 151.25.
On October 30, the rupee did not show any change against the dollar for buying at Rs 131.50. While it rose by 50 paisas for selling at Rs 132.00. The domestic currency shed 25 paisas in terms of the euro for buying at Rs 148.50 while it gained 75 paisas for selling at Rs 150.50. On October 31, the rupee was inert in relation to the dollar for buying and selling at Rs 131.50 and Rs 132.00. The domestic currency shed 20 paisas in terms of the euro for buying and selling Rs 148.70 and Rs 150.70. On November 1st, the rupee maintained last levels in relation to the dollar for the second day in a row for buying and selling at Rs 131.50 and Rs 132.00, they said. The domestic currency lost 30 paisas in terms of the euro for buying and selling Rs 149.00 and Rs 151.00.
On November 2, the rupee picked up 50 paisas against the dollar for buying and selling at Rs 130.80 and Rs 131.50, they said. The domestic currency also lost 50 paisas in terms of the euro for buying at Rs 149.50 and it did not show any change for selling Rs 151.00. On November 3, the rupee stayed put against the dollar for buying and selling at Rs 130.80 and Rs 131.50. The domestic currency gained sharply in terms of the euro for buying and selling at Rs 147.80 and Rs 149.80.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the dollar edged higher against a basket of its key rivals on Monday, not far off a 10-week high hit after data showed US economic growth slowed less than expected and as global risk sentiment remained fragile.
The US currency has found support recently on safe-haven buying as investor demand for riskier assets waned on steep declines in world equity markets on worries over corporate earnings, geopolitical uncertainty and global growth. On Monday, the dollar index, which measures the greenback's performance against a basket of six major currencies, gained 0.1 percent to 96.446. The index has advanced 1.4 percent this month.
On Friday, it rose as high as 96.860, its best level since August 15, after data showed the US economy slowed less than expected in the third quarter. But it later turned and ended 0.3 percent lower on the day.
The euro dipped 0.1 percent to $1.1395 even as German Chancellor Angela Merkel's junior coalition partners gave her conservatives until next year to deliver more policy results.
The dollar was trading against the Indian rupee at Rs 73.403, the greenback was at 4.177 in terms of the Malaysian ringgit and the US currency was available at 6.953 versus the Chinese yuan.
In the second Asian trade, the dollar firmed against its rivals on Tuesday, supported by a safe haven bid as rising trade tensions and fears of a slowdown in global economic growth weighed on investors' appetite for risk assets.
The Japanese yen, also seen as a refuge during times of heightened investor concerns, traded in a narrow range ahead of the Bank of Japan's monetary policy announcement due on Wednesday.
The dollar index, a gauge of the currency's strength against six major peers, traded at 96.66, up 0.1 percent on Tuesday. It hit a 2018 high of 96.98 on August 15.
The dollar was trading against the Indian rupee at Rs 73.570, the greenback was at 4.178 in terms of the Malaysian ringgit and the US currency was at 6.969 versus the Chinese yuan.
In the third Asian trade, the Japanese yen edged lower against the dollar on Wednesday after the Bank of Japan signalled it was a long way off from exiting crisis-era stimulus, while the greenback scaled 16-month highs versus its key rivals on continued strength in the US economy.
The Bank of Japan (BoJ) kept monetary policy steady on Wednesday and cut its price forecasts, reinforcing market expectations that subdued inflation will force it to maintain its massive stimulus programme for the time being.
The US 10-year treasury bond yields rose for the third consecutive trading session on Wednesday and were last at 3.13 percent. The 10-year Japanese government bond yield was 0.12 percent, highlighting the wide gap in favour of the dollar.
The dollar index, a gauge of its value versus six major peers, climbed to a fresh 16-month high to hit 97.06. In the fourth Asian trade, the British pound jumped on Thursday on a report that UK Prime Minister Theresa May has struck a deal with Brussels on financial services, while the dollar held near a 16-month high versus a basket of its key rivals on strong US economic data.
The greenback got a lift overnight after the ADP national employment report showed that US private sector payrolls increased by the most in eight months in October, confirming that the economy continues to grow at a relatively robust pace.
The dollar index, a gauge of its value versus six major peers moved a touch down at 96.91, still close to a 16-month high of 97.2 hit in the previous session.
The pound, which was last $1.2843, up 0.62 percent on the day, has lost 3.6 percent versus the dollar over the past three weeks as markets fretted over whether Britain would secure an orderly exit from the European Union.
The dollar was trading against the Indian rupee at Rs 73.813, the greenback was at 4.181 versus the Malaysian ringgit and the US currency was available at 6.966 in relation to the Chinese yuan.
In the final Asian trade, the dollar steadied on Friday ahead of the closely watched US jobs report, after pulling back from 16-month highs in the previous session as investors cautiously moved back into riskier assets. The dollar index against a basket of six major currencies was little changed at 96.375 after dropping nearly 0.9 percent overnight, weighed down by a rallying sterling.
Sentiment was also buoyed by news of a phone call between US President Donald Trump and Chinese President Xi Jinping that traders hoped could signal an easing in US-China trade tensions.
The pound stood tall after the Bank of England kept interest rates steady on Thursday and hinted at slightly faster future rate rises if Brexit goes smoothly. The dollar was trading against the Indian rupee at Rs 72.825, the greenback was available at 4.165 in terms of the Malaysian ringgit and the US currency was at 6.906 versus the Chinese yuan.
In the final US trade, the dollar rose against the yen and the euro on Friday in a choppy session, as worries that a trade deal between the United States and China may not be imminent curtailed risk appetite and boosted safe-haven demand for the greenback.
White House economic adviser Larry Kudlow told CNBC that President Donald Trump has not asked US officials to draw up a proposed trade plan for China, shooting down an earlier report from Bloomberg that Trump had asked officials to draft a possible deal.
Kudlow also said he was not as optimistic as he once was about the two nations reaching a deal and said that Trump "could pull the trigger" on additional tariffs on Chinese imports, depending on how talks go. Separately, Trump told reporters that a lot of progress had been made with China on trade, and he predicted the world's two largest economies would reach a very good deal.