The rupee appreciated marginally against the dollar on the money market during the shortened week because of Eid-ul-azha and Independence Day holidays. The rupee improved slightly after gaining 30 paisas versus the dollar for buying and selling at Rs 158.65 and Rs 158.70.
INTER-BANK MARKET RATES: OPEN MARKET RATES: In line with the inter-bank market trend, the rupee gave up overnight weakness, gaining 30 paisas versus the dollar for buying and selling at Rs 158.65 and Rs 158.70.
Commenting on the rupee's performance, marketmen said that rupee improved slightly in terms of the dollar due to due to improvement in supply position. They expect that the local currency may improve further on the back of easy supply of dollar. Report showing that country's foreign exchange reserves increase $535 million to $8,264.4 million in the week ending August 9, compared to $7,729.1 million in the previous week.
INTER-BANK MARKET RATES: On Friday, the rupee dropped 52 paisas versus the dollar for buying and selling at Rs 158.95 and Rs 159.00. On Saturday, the rupee gave up overnight weakness, gaining 30 paisas versus the dollar for buying and selling at Rs 158.65 and Rs 158.70, they said.
OPEN MARKET RATES: On August 16, the rupee shed 50 paisas in relation to the dollar for buying Rs 159.00 while it maintained last level for selling at Rs 159.50. The rupee, however, gained slightly against the euro for buying and selling at Rs 174.70 and Rs 176.70.
On August 17, the rupee followed the suit, picking up 30 paisas in relation to the dollar for buying and selling at Rs 158.70 and Rs 159.20. While, the rupee did not show any change against the euro for buying and selling at Rs 174.70 and Rs 176.70.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, the dollar remained on the defensive against the safe-haven yen on Monday as the Sino-US trade dispute looked set to drag on with no settlement in sight, while holidays in Japan and Singapore made for very thin trading.
Confusion still lingered after US President Donald Trump on Friday said he was not ready to make a deal with China and even called a September round of trade talks into question.
Goldman Sachs over the weekend cut its forecast for US economic growth, warning that a trade deal was unlikely before the 2020 presidential election and that the risks of a recession were increasing. The dollar was trading against the Chinese yuan at 7.063.
In the second Asian trade, the yen traded close to a seven-month high against the dollar on Tuesday, as unrest in Hong Kong and gyrations in Argentina's markets heightened investor risk aversion and fanned demand for the safe-haven Japanese currency.
The yen was at 105.495 per dollar after brushing 105.050 overnight, its strongest since January 3. The Japanese currency, which attracts flight-to-safety flows in times of market turmoil, has been on a solid footing this month, supported by factors such as US-China trade tensions and the prospect of further monetary easing by the US Federal Reserve.
The currency has received a fresh boost from deepening unrest in Hong Kong, where the international airport was closed to flights for several hours on Monday amid ongoing demonstrations. Surprise primary election results in Argentina, which resulted in a rout in the country's peso currency, stocks and bonds, have also added support.
The dollar was trading against the Indian rupee at Rs 71.045, the greenback was at 4.191 in terms of the Malaysian ringgit and the US currency was at 7.063 versus the Chinese yuan.
In the third Asian trade, the yen rose on Wednesday as weaker-than-expected Chinese economic data reinforced the view that resolving the trade war was a long way off even if US President Donald Trump had delayed some additional tariffs.
The offshore yuan remained lower against the dollar after China's closely watched industrial output rose in July at the slowest pace in more than 17 years. The onshore yuan rose against the dollar, taking its cue from a stronger fixing.
The dollar index, measuring the greenback against a basket of six currencies, was little changed at 97.755 after jumping 0.4% on Tuesday. The dollar was trading against the Indian rupee at Rs 71.028, the US currency was at 4.183 in terms of the Malaysian ringgit and the greenback was at 7.020 in relation to the Chinese yuan.
In the fourth Asian trade, the yen held gains against major currencies on Thursday as sliding Treasury yields fanned fears of a severe global economic downturn and drove investors into safe-haven assets.
The latest turbulence in financial markets was triggered by an inversion in the US Treasury yield curve for the first time in 12 years, which helped lift gold prices and drove a massive sell-off in US stocks and oil.
Underscoring the worrying signs, 10-year Treasury yields slumped to the lowest in three years in Asian trade while 30-year Treasury yields broke below 2%, which took the entire yield curve below the floor for the Federal Reserve's policy rate.
Sentiment was already fragile after economic data from China and Germany revealed the extent of the damage the US-Sino trade war is causing to two of the world's largest exporters. The dollar index, which measures its value against a basket of six major currencies, stood at 97.914 after a 0.2% gain on Wednesday.
The dollar was trading against the Malaysian ringgit at 4.192 and the US currency was at 7.028 versus the Chinese yuan. In the final Asian trade, the dollar held onto gains on Friday after a surge in US retail sales eased concerns about the world's top economy, but traders cautioned against reading too much into one piece of data given the growing risks to the outlook.
The greenback was on course for a weekly gain against safe-haven currencies such as the Japanese yen and the Swiss franc, pointing to some respite for frayed nerves after fears of recession and protests in Hong Kong rattled financial markets.
During Asian trading the dollar briefly extended gains and the yen fell as Japanese stocks erased early losses to trade higher and as US Treasury yields rose slightly. The move quickly faded, however, partly reflecting thin treading due to the summer holiday season.
Against a basket of six major currencies, the dollar index edged higher to 98.218. Since hitting a three-week low on August 9, the dollar index has recovered, rising around 1%. The dollar was trading against the Indian rupee at Rs 71.233, the greenback was at 4.176 in terms of the Malaysian ringgit and the US currency was available at 7.037 versus the Chinese yuan. In the final US trade, the dollar rallied on Friday on bullish economic data and hit a two-week high against the euro as expectations of central bank stimulus weighed on the single currency.
US homebuilding fell for a third straight month in July amid a steep decline in the construction of multi-family housing units, but a jump in permits to a seven-month high offered hope for the struggling housing market. Better-than-expected retail sales data in the United States on Thursday also encouraged buying of the dollar.