The rupee depicted minor variations against the dollar on the money market during the week, ended on July 27, 2019. The rupee showed marginal changes versus the dollar for buying and selling at Rs 160.57 and Rs 160.59.
INTER-BANK MARKET RATES: OPEN MARKET RATES: The rupee moved slightly in relation to the dollar for buying and selling at Rs 160.00 and Rs 160.50. While, the rupee gained slightly in terms of the euro for buying and selling at Rs 177.70 and Rs 179.50.
Marketmen observed that despite steep fall in the rupee's value versus the dollar the exports did not show any significant improvement, particularly, textile products. Reports showing that textile exports to the 28-member European Union posted partly growth of 2.84 percent despite Generalised System of Preferences-plus (GSP+), showing a failure of GSP+ to help boost export.
INTER-BANK MARKET RATES: On Monday, the rupee lost 35 paisas versus the dollar for buying and selling at Rs 160.50 and Rs 160.55. On Tuesday, the rupee shed five paisas versus the dollar for buying at Rs 160.55 and it also dropped 10 paisas for selling and Rs 160.65.
On Wednesday, the rupee lost 20 paisas versus the dollar for buying and selling at Rs 160.75 and Rs 160.80. On Thursday, the rupee rose by 35 paisas versus the dollar for buying and selling at Rs 160.40 and Rs 160.50.
On Friday, the rupee lost 17 paisas versus the dollar for buying and selling at Rs 160.57 and Rs 160.59.
OPEN MARKET RATES: On July 22, the rupee also shed 20 paisas in relation to the dollar for buying and selling at Rs 160.20 and Rs 160.70. While, the rupee maintained almost week-end levels in terms of the euro for buying and selling at Rs 179.00 and 181.00.
On July 23, the rupee did not show any change in relation to the dollar for buying and selling at Rs 160.20 and Rs 160.70. While, the rupee gained 50 paisas in terms of the euro for buying at Rs 178.50 and it also rose by Re one for selling and 180.00.
On July 24, the rupee shed 10 paisas in relation to the dollar for buying and selling at Rs 160.30 and Rs 160.80. While, the rupee was trading in terms of the euro for buying and selling at Rs 178.30 and Rs 180.50.
On July 25, the rupee followed the same pattern, gaining 10 paisas in relation to the dollar for buying and selling at Rs 160.20 and Rs 160.70, dealers said. While, the rupee was also picked up 30 paisas in terms of the euro for buying and selling at Rs 178.00 and Rs 180.00, they said.
On July 26, the rupee, however, gained 20 paisas in relation to the dollar for buying and selling at Rs 160.00 and Rs 160.50. While, the rupee sustained it's overnight levels in terms of the euro for buying and selling at Rs 178.00 and Rs 180.00.
On July 27, the rupee did not show any change in relation to the dollar for buying and selling at Rs 160.00 and Rs 160.50. While, the rupee gained slightly in terms of the euro for buying and selling at Rs 177.70 and Rs 179.50.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the dollar drifted higher on Monday as investors tempered their expectations for deep US interest rate cuts this month and heightened Middle East tensions supported safe-haven assets.
While currency-market focus will centre on global central bank decisions scheduled for the next two weeks, traders are also watching for developments in US-China trade negotiations and Wall Street earnings.
The dollar broke above 108 yen to hit its highest since Wednesday, though that was still in the middle of the 107-109 range where it has traded for a month. The dollar index, was barely changed at 97.179 after gaining 0.35% last week.
The dollar was trading against the Indian rupee at Rs 68.990, the greenback was at 4.112 in terms of the Malaysian ringgit and the US currency was at 6.879 versus the Chinese yuan.
In the second Asian trade, Sterling was on the back foot on Tuesday as investors worried Boris Johnson, the frontrunner to become the UK's next prime minister, would trigger a "hard Brexit" from the European Union, widely seen as a major risk for the British economy.
The euro briefly touched the lowest in five weeks due to growing expectations European Central Bank President Mario Draghi will signal a rate cut in September at a policy meeting later this week to keep inflation expectations on track.
The dollar was trading against the Indian rupee at Rs 69.018, the greenback was at 4.117 in terms of the Malaysian ringgit and the US currency was available at 6.883 versus the Chinese yuan.
In the third Asian trade, the euro slipped to a two-month low on Wednesday, as markets waited to gauge the European Central Bank's stance on policy amid bubbling expectations that it could eventually lower interest rates and join the global easing trend.
The common currency was 0.05% lower at $1.1145 after touching $1.1143, its lowest since May 31. It had already lost more than 0.5% the previous day and shed nearly 0.7% so far this week.
The euro's decline has quickened ahead of the ECB's policy meeting on Thursday. While markets have pared their bets the central bank would cut rates by 10 basis points, they still expect dovish guidance, paving the way for easing in September.
The dollar index edged up to a five-week high of 97.755, following gains of nearly 0.5% the previous day. The dollar was trading against the Indian rupee at Rs 69.040, the greenback was at 4.119 in terms of the Malaysian ringgit and the US currency was available at 6.883 versus the Chinese yuan.
In the fourth Asian trade, the euro was mired near a two-month low on Thursday before a European Central Bank meeting that could signal monetary easing as growth in the currency zone falters.
Sentiment towards the single currency took a big hit after data on Wednesday showed Germany's manufacturing sector contracted at the fastest pace in seven years while French business growth unexpectedly slowed, sending European bond yields lower.
The common currency traded at $1.11350 after touching $1.11270, its lowest since May 31. The euro has fallen 2.0% this month on increased speculation the ECB would join other central banks in easing policy as a trade war between the United States and China weakens the global economy.
The dollar index, which measures the greenback against six major currencies, stood at 97.725 after touching an eight-week high of 97.810 on Wednesday.
The dollar was trading against the Indian rupee at Rs 68.963, the US currency was available at 68.98 in terms of the Malaysian ringgit and the greenback was at 6.876 versus the Chinese yuan.
In the final Asian trade, the dollar stayed near a two-week high versus the yen on Friday as investors pared expectations for aggressive Federal Reserve interest rate cuts ahead of key US economic data later in the day.
The euro held gains after the European Central Bank (ECB) kept policy unchanged, disappointing some market participants who had bet on an easing, but sources told Reuters a rate cut at the ECB's next meeting appeared certain.
In addition, a bounce in Treasury yields and data on Thursday showing a surge in US capital goods orders provided more reasons for traders to reconsider expectations for global monetary easing.
With no major events scheduled in Asia on Friday, investors are likely to look to US economic data later in the day. The focus then shifts to Bank of Japan (BOJ) and Federal Reserve meetings next week.
The Fed is widely expected to cut rates, but there are growing views such a move may be a one-off event, not the start of a major easing cycle. The BOJ is also divided over whether to ease policy, but expectations for a move are low.
The dollar was trading against the Indian rupee at Rs 69.025, the greenback was at 4.119 versus the Malaysian ringgit and the US currency was available at 6.882 in terms of the Chinese yuan.
In the final US trade, the dollar reached two-month peaks on Friday, as better-than-expected US growth data did not alter the view the Federal Reserve would soon lower rates for the first time in a decade.
The dollar's rise was also helped by widening yield differentials between US and German debt. Spreads were holding at two-month highs at 250.5 basis points.