Mixed patterns

The rupee moved both ways against the dollar during the week, ended on Dec 21, 2019.

INTER-BANK MARKET RATES: The rupee picked up 10 paisas against the dollar for buying at Rs 154.89 and selling Rs 154.91.

OPEN MARKET RATES: The rupee shed 30 paisas versus the dollar for buying at Rs 154.70 and it also lost 40 paisas for selling at Rs 155.10, they said. The rupee, however, gained 20 paisas in terms of the euro for buying and selling at Rs 170.50 and Rs 172.00.

Commenting on the rupee’s direction versus the dollar, marketmen said that the rupee maintained firm trend during the week, but at the closing sessions, the national currency tended lower in the open market due to strong demand for dollars.

The country’s foreign exchange reserves went up at 10.893 billion dollars, definitely this factor will improve availability of dollars, marketmen observed.

INTER-BANK MARKET RATES: On Monday, the rupee dropped modestly in terms of the dollar for buying and selling at Rs 154.99 and Rs 155.01, they said.

On Tuesday, the rupee picked up modestly in relation to the dollar for buying and selling at Rs 154.94 and Rs 154.96. On Wednesday, the rupee showed no major changes against the dollar for buying and selling at Rs 154.94 and Rs 154.96 respectively. On Thursday, the rupee picked up five paisas against the dollar for buying and selling at Rs 154.89 and Rs 154.91.

On Friday, the rupee managed to hold last levels against the dollar for buying and selling at Rs 154.89 and Rs 154.91, they said.

OPEN MARKET RATES: On Dec 16, the rupee was almost unchanged versus the dollar for buying and selling at Rs 154.40 and Rs 154.70, they said. While, the rupee lost 70 paisas against the euro for buying and selling at Rs 171.20 and Rs 172.80, they said.

On Dec 17, the rupee did not move any side versus the dollar for buying and selling at Rs 154.40 and Rs 154.70. While, the rupee shed 30 paisas against the euro for buying and selling at Rs 171.50 and Rs 173.00.

On Dec 18, the rupee was unchanged versus the dollar for buying and selling at Rs 154.40 and Rs 154.70 respectively, they said. The rupee was trading versus the euro for buying and selling at Rs 171.00 and Rs 172.50 respectively, they said.

On Dec 19, the rupee did not show any change versus the dollar for buying and selling at Rs 154.40 and Rs 154.70 respectively, they said. The rupee was trading in terms of the euro for buying and selling at Rs 171.00 and Rs 172.50.

On Dec 20, the rupee shed 10 paisas versus the dollar for buying at Rs 154.50 while it dropped by 20 paisas for selling at Rs 154.90, they said. The rupee gained 30 paisas in terms of the euro for buying and selling at Rs 170.70 and Rs 172.20, respectively, they said.

On Dec 22, the rupee lost 10 paisas versus the dollar for buying and selling at Rs 154.70 and Rs 154.90, they said. The rupee, however, gained 20 paisas in terms of the euro for buying and selling at Rs 170.50 and Rs 172.00.

WORLD VAULUE OF DOLLAR VS MAJOR CURRENCIES: In the first Asian trade, currencies made a muted response to the US-China trade deal on Monday, as last week’s brief relief that an agreement had been reached was replaced by frustration at a lack of details, and a reluctance to make big bets as Christmas draws near.

Washington and Beijing cooled their trade war last week, reducing some US tariffs in exchange for what US officials said would be a big jump in Chinese purchases of American farm products and other goods.

That had lifted the Australian dollar and pushed down the safe-harbour yen last week, before profit-taking set in.

The Chinese yuan traded at 6.9959 per US dollar, still stronger than the symbolic 7 mark but below the four-month high of 6.9589 that it hit last week.

Both currencies found some support from slightly stronger-than-expected Chinese production and consumption data.

The euro rose marginally to $1.1129, as did the Japanese yen to 109.40 per dollar. Against a basket of currencies, the dollar weakened 0.1% to 97.084.

The dollar was trading against the Indian rupee at Rs 70.970, the US currency was at 4.138 in terms of the Malaysian ringgit and the greenback was at 6.998 versus the Chinese yuan.

In the second Asian trade, the British pound fell on Tuesday after reports UK Prime Minister Boris Johnson was seeking a hard line on Britain’s transition period after Brexit, while the Aussie dollar dropped on a downbeat tone from the nation’s central bank.

Sterling dropped as much as 0.7% to $1.3236, as its Friday’s 1-1/2-year peak of $1.3516 looked increasingly like a near-term peak following the massive relief rally after last week’s UK election.

Johnson’s revised Withdrawal Agreement Bill would require the United Kingdom to have arrangements to leave the European Union be in place by Dec. 31 next year, UK broadcaster ITV reported on Monday.

The move dashes hopes Johnson would take a flexible approach to the end-2020 deadline for a trade deal with the EU after Britain leaves the bloc, which now looks almost certain to happen on Jan. 31 following the landslide Conservative election win.

The dollar was available against the Indian rupee at 70.970, the greenback was at 4.140 in terms of the Malaysian ringgit and the US currency was trading at 6.998 versus the Chinese yuan.

In the third European trade, the pound extended its slide on Wednesday, as Britain’s fixing of a fresh Brexit deadline rekindled fears of a chaotic exit from the European Union, while the dollar won back lost ground.

Sterling has collapsed more than 3% since it peaked at an 18-month high of $1.3516 after Prime Minister Boris Johnson’s landslide electoral victory last week.

The dollar was available against the Indian rupee at 71.063, the greenback was at 4.142 in terms of the Malaysian ringgit and the US currency was trading at 7.004 versus the Chinese yuan.

In the fourth trade, the New Zealand dollar bounced from a one-week low on Thursday after the country’s third quarter economic growth came in stronger than expected while greenback traders awaited a vote to impeach US President Donald Trump.

In Britain, the pound remained under pressure on rekindled fears of a chaotic exit from the European Union. It was last at $1.3077 after sliding nearly 2% in as many days.

The kiwi climbed to $0.6589 from Wednesday’s low of $0.6555 after New Zealand’s annual gross domestic product accelerated 2.7% in the third quarter against expectations for a 2.4% gain.

Risk sensitive currencies such as the kiwi and its Australian counterpart started December on a firm footing led by the apparent removal of two main risks dominating global markets: a preliminary US-China trade deal and the election victory of UK Prime Minister.

The dollar was trading against the Indian rupee at Rs 70.880, the greenback was at 4.138 versus the Malaysian ringgit and the US currency was available at 7.001.

In the final Australian trade, the sterling was precariously poised as it headed for its worst week in more than two years on Friday, hobbled by familiar fears of a chaotic British exit from the European Union, while firm data helped the dollar arrest its recent slide.

Overnight the pound slipped below $1.30 for the first time in a fortnight. It was last quoted at $1.3022 as worries grow about whether a deal can be secured before the December 2020 hard deadline.

Cable has given up all the gains won after Prime Minister Boris Johnson was re-elected last week and has slumped 2.3% against the dollar since Monday. It has fared even worse against the euro, headed for its largest weekly loss since July 2017.

The dollar was trading against the Indian rupee at Rs 71.160, the greenback was available versus the Malaysian ringgit at 4.140 and the US currency was at 7.009 in terms of the Chinese yuan.

In the final US trade, the dollar recorded its best week since early November after a series of strong US economic data releases that make a near-term cut in interest rates unlikely.

US growth nudged up in the third quarter, the government confirmed on Friday, and there are signs the economy maintained the moderate pace of expansion as the year ended, supported by a strong labour market.

Gross domestic product increased at a 2.1% annualized rate, the Commerce Department said on Friday in its third estimate of third-quarter GDP. That was unrevised from November’s estimate in line with economists’ expectations. Consumer spending was stronger than previously reported, and there were upgrades to business spending.

Earlier this week, the US reported that the domestic homebuilding market was regaining steam and the manufacturing sector was stabilizing. That has driven the dollar index up 0.56% this week. It was last up 0.35% on the day to 97.724.

The GDP and personal consumption figures are “indicators of the strength of the economy going into 2020,” wrote analysts at Western Union Business Solutions.

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