The rupee managed to halt further erosion, recovered most lost ground against the dollar on the money market during the week, ended on May 25, 2019.
INTER-BANK MARKET RATES: The rupee recovered Rs 1.30 against the dollar for buying at Rs 150.80 and it also rose by 50 paisas for selling at Rs 151.00.
OPEN MARKET RATES: The rupee gained slightly versus the dollar for buying at Rs 150.00, it also picked up 50 paisas for selling at Rs 151.00, they said. The rupee, also appreciated by Rs 1.70 against the euro for buying and selling at Rs 164.00 and Rs 168.00, they said.
Commenting on the rupee's performance, marketmen said that the rupee showed significant improvement versus the dollar due to positive developments on the economic front.
It is most likely that the rupee may recover further ground against the dollar in the coming days, they observed. Pakistan's rupee reached a new record low last Monday, selling at 153 against the dollar in the inter-bank market to continue a slide that saw it lose more than 5 percent last week in the wake of a $6 billion loan accord with the International Monetary Fund (IMF). During the next session, the rupee was trading at Rs 155 in terms of the dollar in the currency market, they said.
INTER-BANK MARKET RATES: On Monday, the rupee lost Re one against the dollar for buying and selling at Rs 149.50 and Rs 150.90. On Tuesday, the rupee lost 1.30 against the dollar for buying at Rs 151.80 and it also fell by Rs 2.20 for selling Rs 152.20. On Wednesday, the rupee picked up 10 paisas against the dollar for buying at Rs 151.90 and it also gained 20 paisas for selling Rs 152.00.
On Thursday, the rupee gained 50 paisas against the dollar for buying and selling at Rs 151.40 and Rs 151.50. On Friday, the rupee picked up 80 paisas against the dollar for buying at Rs 150.80 and it also rose by 50 paisas for selling at Rs 151.00.
OPEN MARKET RATES: On May 20, the rupee nearly dropped the same amount in terms of the dollar for buying and selling at Rs 150.00 and Rs 150.90, they said. The rupee also dropped Rs 2 against the euro for buying and selling at Rs 167.00 and Rs 169.50, they said.
On May 21, the rupee dropped by Rs 2 to Rs 152.00 and the local currency also shed Rs 2.50 for selling at Rs 153.50. The rupee maintained overnight level against the euro for buying Rs 167.00 and it also depreciated by 50 paisas for selling at Rs 170.00.
On May 22, the rupee did not show any change versus the dollar for buying at Rs 152.00 while it appreciated by 50 paisas for selling at Rs 153.00, they said. The rupee shed 50 paisas against the euro for buying and selling at Rs 167.50 and Rs 170.50. On May 23, the rupee picked up 20 paisas versus the dollar for buying at Rs 151.80, it also appreciated by 50 paisas for selling at Rs 152.50. The rupee gained sharply against the euro for buying and selling at Rs 166.00 and Rs 169.00.
On May 24, the rupee appreciated by 80 paisas versus the dollar for buying at Rs 151.00, it also gained Re.one for selling at Rs 151.50, they said. The rupee, however, shed 30 paisas against the euro for buying and selling at Rs 166.30 and Rs 169.50, they said.
On May 25, the rupee gained Re.one versus the dollar for buying at Rs 150.00, it also picked up 50 paisas for selling at Rs 151.00, they said. The rupee, also appreciated by Rs 1.70 against the euro for buying and selling at Rs 164.00 and Rs 168.00, they said.
OVERSEAS OUTLOOK: In the first Asian trade, the Australian dollar firmed on Monday in the wake of a surprise election victory by the country's conservative government, although the gains were pared in the face of Sino-US trade tensions and bets for a local rate cut.
The Aussie dollar was last at $0.6906, having bounced from a four-month trough of $0.6865. The currency was briefly quoted as high as $0.6990 but dealers said that was a miss-hit and the true dealt peak was $0.6938.
The New Zealand dollar edged up to $0.6530 and away from a seven-month low of $0.6514. The blip higher came after Australian Prime Minister Scott Morrison's centre-right Liberal National Coalition pulled off a shock win in federal elections, beating the left wing Labour Party.
The dollar was trading against the Indian rupee at Rs 69.605 and the greenback was at 6.908 in terms of the Chinese yuan.
In the second Asian trade, the dollar held near a 2-1/2-week high on Tuesday, supported by higher US-yields and as intensifying trade frictions between the United States and China boosted appetite for the safe-haven greenback. The dollar index against a basket of six major currencies stood at 97.947 after brushing 98.036 overnight, its highest since May 3.
Global equities have taken a hit this week, with a US crackdown on China's Huawei Technologies driving chipmakers lower due to fears of a widening trade conflict.
The dollar was trading against the Indian rupee at Rs 69.750, the greenback was at 4.184 in terms of the Malaysian ringgit and the US Currency was available at 4.175 against the Chinese yuan.
In the third Asian trade, the dollar hovered near a four-week high on Wednesday, supported by higher US yields after the United States eased trade restrictions on Chinese telecommunications equipment maker Huawei Technologies.
The move came as a relief to markets hit by escalating trade tensions between the United States and China, though analysts said sentiment remained fragile with tariff negotiations between the world's two The index has risen 1.9% so far this year. The US Commerce Department blocked Huawei Technologies Co Ltd from buying US goods last week, leading several companies to suspend business with the world's largest telecoms equipment maker.
The dollar was trading against the Indian rupee at Rs 69.748 and the greenback was available at 6.913 in terms of the Chinese yuan. In the fourth Asian trade, the yen advanced against its peers on Thursday as persistent US-China trade fears and Brexit concerns fanned risk aversion, lifting the safe-haven Japanese currency.
The yen was 0.1% firmer at 110.240 to the dollar, having pulled back from a two-week low of 110.675 plumbed on Tuesday. The Japanese currency also rose modestly against the euro, pound and Australian dollar, adding to overnight gains.
Reports that the United States could impose restrictions on Chinese technology company Hikvision renewed market jitters about trade on Wednesday, reversing a relief rally that followed Washington's move to temporary ease curbs against Huawei Technology Co Ltd.
The dollar was trading against the Indian rupee at Rs 69.535, the greenback was at 4.192 in terms of the Malaysian ringgit and the US currency was available at 6.914 versus the Chinese yuan.
In the final Asian trade, the dollar held steady on Friday, having come off two-year highs on lower US yields in the previous session amid fears that a trade war with China will hurt the US economy more than previously thought.
The dollar was trading against the Indian rupee at Rs 69.710, the greenback was at 4.191 in terms of the Malaysian ringgit and the US currency was available at 6.912 in relation to the Chinese yuan.
In the final Asian trade, the dollar held steady on Friday, having come off two-year highs on lower US yields in the previous session amid fears that a trade war with China will hurt the US economy more than previously thought.
The greenback was not helped by rising expectations for an interest rate cut by the US Federal Reserve later this year to help boost the world's biggest economy.
Against a basket of key rival currencies, the dollar was largely unchanged at 97.906, having fallen from a two-year high of 98.371 overnight. The index is still up 1.8% for the year.
On Thursday, President Donald Trump said US complaints against Huawei Technologies Co Ltd might be resolved within the framework of a US-China trade deal, while at the same time calling the Chinese telecommunications giant "very dangerous."
The dollar was trading against the Indian rupee at Rs 69.710, the greenback was at 4.191 in terms of the Malaysian ringgit and the US currency was available at 6.912 in relation to the Chinese yuan.