THE RUPEE: upward trend

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-File Photo


The rupee managed to gain modestly against the dollar on the money market during the week, ended on May 6, 2017.

INTERBANK MARKET RATES: The rupee almost traded within a band of Rs 104.79 and Rs 104.81 and Rs 104.84 and Rs 104.85.

OPEN MARKET RATES: The rupee gained 30 paisas in relation to the dollar for buying and selling at Rs 105.60 and Rs 105.80. The rupee, however, shed 70 paisas in relation to the euro for buying and selling at Rs 115.50 and Rs 117.00.

According to reports, country’s exports went up slightly as a result of rupee’s fall against the major currencies. Besides, foreign exchange reserves dropped to 21 billion dollars, this factor may cause short supply position in days to come, they observed.

INTERBANK MARKET RATES: On Tuesday, the rupee moved in a tight range in terms of the dollar for buying and selling at Rs 104.79 and Rs 104.81.

On Wednesday, the rupee shed three paisas in relation to the dollar for buying and selling at Rs 104.83 and Rs 104.84.

On Thursday, the rupee moved slightly in terms of the dollar for buying and selling at Rs 104.84 and Rs 104.85. On Friday, the rupee managed to hold overnight levels versus the dollar in process of trading.

OPEN MARKET RATES: On May 2nd, the rupee shed 10 paisas against the dollar for buying and selling at Rs 105.90 and Rs 106.10. The rupee also dropped by 20 paisas in relation to the euro for buying and selling at Rs 114.80 and Rs 116.30. On May three, the rupee, however, gained 10 paisas versus the dollar for buying and selling at Rs 105.80 and Rs 106.00 for buying and selling. The rupee did not depict any change in term of the euro for buying and selling Rs 114.80 and Rs 116.30.

On May 4, the rupee gained 10 paisas further against the dollar for buying and selling at Rs 105.70 and Rs 105.90. The rupee, however, dropped by 20 paisas in relation to the euro for buying and selling at Rs 115.00 and Rs 116.50.

On May 5, the rupee improved with 10 paisas further gains against the dollar for buying and selling at Rs 105.60 and Rs 105.80. The rupee, however, dropped by 30 paisas in relation to the euro for buying and selling at Rs 115.30 and Rs 116.80.

On May 6, the rupee was unchanged against the dollar for buying and selling at Rs 105.60 and Rs 105.80, they said. The rupee, however, shed 20 paisas in relation to the euro for buying and selling at Rs 115.50 and Rs 117.00, they said.

OVERSEAS MARKET OUTLOOK: In the first Asian trade, the dollar shrugged off early modest losses in holiday-thinned, while solid European inflation data underpinned the euro.

Several markets across Asia and Europe were closed for the May Day holiday. Tokyo markets will be closed for three days from Wednesday for a string of holidays known as Golden Week, and many investors take additional time off. The dollar index, which tracks the greenback against a basket of six rival currencies, edged up 0.1 percent to 99.144.

It is hard for markets to make big moves with holidays in so many places today, and people are just waiting for more information to come out,” said Harumi Taguchi, principal economist at IHS Markit in Tokyo.

Against its Japanese counterpart, the dollar nudged 0.1 percent higher to 111.68. Dollar/yen is holding up, despite the weaker US GDP,” said Masafumi Yamamoto, chief currency strategist for Mizuho Securities in Tokyo, as US Treasury yields rose.

In the second Asian trade, the dollar hit a one-month high against the yen, lifted by Treasury yields which surged after US Treasury Secretary Steven Mnuchin commented on the possibility of ultra long-term bond issuance.

The greenback last traded at 111.900 yen after touching 111.985, its strongest since March 31. The dollar was boosted as long-term Treasury yields soared to multi-week highs after Mnuchin reiterated his view in an interview with Bloomberg, saying the government issuing debt exceeding 30-years in maturity “can absolutely make sense.” The dollar is moving in tandem with Treasury yields, which saw its benchmark rise above the 2.3 percent threshold with Mnuchin seemingly very enthusiastic about issuing so-called ultra long-term bonds,” said Yukio Ishizaki, senior currency strategist at Daiwa Securities.

The jump in US debt yields helped the dollar brush off negative pressure from downbeat data.

The dollar was trading versus the Indian rupee at Rs 64.178, the greenback was at 4.326 in terms of the Malaysian ringgit and the US currency was at 6.896 against the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Tuesday: 80.35-80.35 (previous 80.23-80.23). In the third Asian trade, In the third Asian trade, the dollar traded below a six-week high against the yen, as the market awaited the Federal Reserve’s policy statement for hints on the US interest rate outlook, while the kiwi strengthened after strong New Zealand jobs data.

The Federal Reserve is widely expected to keep interest rates unchanged at the end of its two-day policy meeting on Wednesday, but investors will look to see whether the central bank downplays the recent soft patch in the economy to leave the door open for a rate increase in June.

The dollar last traded at 112.02 yen, still not very far from a six-week high of 112.33 yen set on Tuesday. The dollar was trading against the Indian rupee at Rs 64.130, the greenback was at 4.313 versus the Malaysian ringgit and the US currency was at 6.891in relation to the US currency. Inter bank buy/sell rates for the taka against the dollar on Wednesday.80.40-80.40 (previous 80.35-80.35). In the fourth Asian trade, the dollar hit a six-week high against the yen, after the US Federal Reserve downplayed weak first-quarter economic growth and was seen as leaving the door open to raising interest rates in June.

The Fed kept interest rates unchanged on Wednesday while emphasising the strength of the labour market – a sign it was still on track for two more rate rises this year.

The central bank said consumer spending continued to be solid, business investment had firmed, and inflation has been “running close” to its target. The dollar rose to 112.89 yen earlier on Thursday, its strongest level in more than six weeks. It later pared those gains and last traded at 112.76 yen, little changed from late US trade on Wednesday.

The US currency benefited as the Fed kept the door “wide open” to a June rate hike, said Mitul Kotecha, head of Asia macro strategy for Barclays in Singapore. The dollar was trading against the Indian rupee at Rs 64.205, the greenback was at 4.323 in terms of the Malaysian ringgit and the US currency was at 6.897 in relation to the Chinese yuan.

Inter bank buy/sell rates for the taka against the dollar on Thursday: 80.44-80.45 (previous 80.40-80.40) In the final Asian trade, the Canadian dollar set a 14-month low and the Australian dollar hit a four-month trough as oil prices slid on Friday, while the safe haven yen edged higher as risk sentiment wavered. The Canadian dollar slipped to C$1.3790 per US dollar at one point, its weakest level since late February 2016. The loonie was last down 0.3 percent at C$1.3786.

The Australian dollar slid to $0.7372 at one point, its lowest level since January 11, last trading at $0.7381, down 0.4 percent on the day. Commodity-linked currencies took their cues from a slide in oil prices, said Stephen Innes, a senior trader for FX broker OANDA in Singapore. I think that’s really driving it. It’s just a direct correlation with oil prices and a little bit of risk aversion coming into the dollar/yen,” Innes said. US West Texas Intermediate (WTI) crude oil futures slid 3 percent on the day. The dollar fell 0.3 percent against the yen to 112.19, pulling away from a seven-week high of 113.045 yen set on Thursday.

The euro touched a six-month high of $1.0990 at one point, supported by expectations that centrist Emmanuel Macron will win the final round of France’s presidential election on Sunday. The euro last traded at $1.0985, little changed on the day but up 0.8 percent for the week.

The dollar was trading against the Indian rupee at Rs 64.310, the greenback was at 4.335 in terms of the Malaysian ringgit and the US currency was at 6.895 versus the Chinese yuan. At the week-end, the US dollar hit its lowest level in roughly six months against the euro on Friday after data showing US jobs growth rebounded sharply in April was not enough to shake investors’ bullishness toward the euro ahead of the second round of France’s presidential election.

US non-farm payrolls surged by 211,000 jobs last month, the Labour Department said, beating expectations of economists polled by Reuters for a gain of 185,000. The drop of one-tenth of a percentage point in the unemployment rate to 4.4 percent took it to its lowest level since May 2007.

They also said the weaker March jobs figure and labour force participation rate gave traders an excuse to continue holding the euro. The euro hit $1.0991, its highest since early November 2016, after the US jobs data and has risen to that level from a 14-year low of $1.0339 touched in early January. The dollar rose slightly against the yen and was last up 0.1 percent against the Japanese currency at 112.54 yen after the data, but remained below Thursday’s roughly seven-week high of 113.04 yen.-Business Recorder

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