The rupee held present levels against the dollar during the shortened week due to Eid-ul-fitr holidays. In the interbank market, the rupee dropped by 13 paisa versus the dollar for buying at Rs 98.87 and it also lost 14 paisa for selling at Rs 98.88.
In the open market, the rupee gained 30 paisa against the dollar for buying and selling at Rs 98.50 and Rs 98.70, while the national currency, stayed put in terms of the euro for buying and selling at Rs 132.00 and Rs 132.25.
The dollars’ supply was good, which helped the rupee to recover ground. Commenting on an appreciation in the rupee’s value, president of the Forex Association of Pakistan (FAP), Malik Bostan said that the rupee should touch the high at Rs 98 but it resisted its gains due to major oil payments. Dollars’ supply was not very tight but oil bills were higher, which limited rupee’s gains versus the greenback, he added.
It is most likely that the rupee may hold its levels versus the dollar as a result of selling by public after long holidays, he added.
OPEN MARKET RATES: On July 28, the rupee did not move any side in relation to the dollar for buying and selling at Rs 98.80 and Rs 99.00. While, the rupee picked up 25 paisa against the euro for buying and it showed no change for selling at Rs 132.00 and Rs 132.25. The currency market was closed during the week due to holidays. On August 2, the rupee gained 30 paisa in relation to the dollar for buying and selling at Rs 98.50 and Rs 98.70. The domestic currency, depicted no variation versus the euro for buying and selling at Rs 132.00 and Rs 132.25.
OVERSEAS OUTLOOK FOR DOLLAR VS MAJOR CURRENCIES: In the first Asian trade, the US dollar hovered near six-month highs against a basket of major currencies on Monday, holding onto solid gains made last week as investors turned bearish on the euro. Caution limited its upside, however, ahead of key US economic data later this week and a US Federal Reserve meeting ending on Wednesday which many believe is likely to culminate in the same dovish message from Chair Janet Yellen.
The dollar was trading against the Indian rupee at Rs 60.10, the greenback was at 3.1730 in terms of the Malaysian ringgit and the US currency was available at 6.1863 versus the Chinese yuan.
In the second Asian trade, the dollar held near a six-month peak against a basket of currencies ahead of this week’s Federal Reserve policy review, while the kiwi slipped after dairy giant Fonterra cut its forecast payout to farmers. The New Zealand dollar was down 0.4 percent at $0.8517 and set a low of $0.8512, its weakest level since June 10, after Fonterra Ltd slashed its forecast payout to its suppliers in the new season by 14 percent.
The dollar was trading against the Indian rupee at Rs 60.13, the greenback was available at 3.1730 in terms of the Malaysian ringgit and the greenback was at 6.1837 versus the Chinese yuan.
In the third Asian trade, the dollar touched a six-month high against a basket of major currencies, holding firm ahead of a Federal Reserve policy decision and US gross domestic product data due later in the day. Dollar bulls are holding out hope that the US economy has rebounded in the second quarter from a very soft patch and that the Fed will provide some hints on when it will raise interest rates.
The dollar was at Rs 60.14 in terms of the Indian rupee, the greenback available at 3.1820 versus the Malaysian ringgit and the US currency was at 6.1763 in relation to the Chinese yuan.
In the final Asian trade, the dollar bulls took a breather on Friday ahead of a closely watched jobs report that has the potential to make or break a rally that saw the greenback post its best monthly performance in over a year. The dollar index was steady at 81.479, having risen 2.1 percent in July to a 10-1/2 month peak of 81.573.
The dollar was trading against the Indian rupee at Rs 60.86, the greenback was at 3.2070 versus the Malaysian ringgit and the US currency was available at 6.1743 in relation to the Chinese yuan.
At the week-end, the US dollar was on track for its biggest daily loss against a basket of major currencies in over three weeks on Friday after the US government’s July employment report showed no signs of wage inflation, supporting a continued dovish stance from the Federal Reserve. The Labour Department said US non-farm payrolls increased 209,000 last month, below economists’ expectations for an increase of 233,000, while the unemployment rate unexpectedly rose to 6.2 percent. Data for May and June were revised to show a total of 15,000 more jobs created than previously reported.