The rupee/dollar parity commenced the week on a stable note amid range bound trading in the inter bank market. The rupee held its weekend levels on April 30 and traded unchanged versus the dollar at Rs60.65 and Rs60.66 on comfortable supply poison of the American currency. Trading in currencies remained suspended on May 1, as markets were closed on account of public holiday, being Labour Day.
Stability persisted on the third day of the week in review. The rupee inched up slightly on the buying counter gaining one paisa versus the dollar on May 2. However, it remained unchanged on the selling counter, changing hands at Rs60.64 and Rs60.66. On May 3, firmness prevailed on the third trading day with the rupee gaining two paisa on the buying counter and another three paisa on the selling counter changing hands against the dollar at Rs60.62 and Rs60.63.
The rupee firmness persisted on May 4, as it posted fresh gains of three paisa and traded at Rs.60.59 and Rs.60.60 against the dollar on improved supply of dollar. During the week in review, the rupee in the inter bank market managed to recover seven paisa on buying counter and six paisa on selling counter against the dollar.
In the open market, the rupee continued unchanged at its weekend's levels of Rs60.65 and Rs60.75 on the opening day of the week in review. The market was closed on May 1, being Labour Day Holiday. When it reopened on May 2, the rupee/dollar parity remained intact and showed a stable trend for the second day in a row. The rupee remained traded at Rs60.65 and Rs60.75 against the dollar.
On May 3, the rupee continued unchanged at Rs60.65 and Rs60.75 for the third successive day. On May 4, the rupee gained three paisa for buying and five paisa for selling to trade at Rs60.62 and Rs60.70. This week the rupee in the open market managed to recover three paisa on buying counter and five paisa on selling counter against the dollar.
Versus the European single common currency, the rupee’s previous week weakness persisted during the week in review. It further slid against euro, shedding 11 paisa and traded at Rs82.55 and Rs82.65 on April 30. When market re-opened on May 2 after observing Labour Day Holiday on May 1, currency dealers witnessed a sharp recovery in the rupee value. The rupee gained 40 paisa in a single day trading against the euro, which traded at Rs.82.15 and Rs.82.25.
On May 3, the rupee however, failed to hold its overnight firmness and lost 19 paisa against the euro, changing hands at Rs82.34 and Rs82.44. On May 4, the rupee, however, managed to rise against euro recovering 19 paisa to trade at Rs82.15 and Rs82.25. As compared to previous week close, the rupee this week recovered 29 paisa against the European single common currency.
On the international front, signs of sluggish US growth pushed the dollar just shy of a record low against the euro, capping the US currency's steepest monthly slide since November. The euro was trading at $1.3645, near its closing level, after earlier hitting a session peak around $1.3680. It hit $1.3683, its highest level since its launch in 1999. The dollar was down 0.1 percent against the yen, trading at about 119.45 yen, while sterling slipped 0.1 per cent to $1.9995, near a 26-year high touched earlier this month.
April has been the cruellest month for the dollar.
The euro has climbed more than two per cent against the dollar since April began, the largest increase since November, and analysts expect the rally to continue at least until the second half of the year. The big, underlying theme remains that the European economy is doing well, the US less so, and the European interest rate cycle keeps going.
The Canadian dollar was one of the biggest movers on the day because of stronger-than-expected economic growth data, which pushed the loonie to a seven-month high. The US dollar was down nearly 0.7 per cent to C$1.1095. Sterling eased against a broadly firm dollar, moving further below the $2 mark as British data provided some signs that higher interest rates could be starting to take their toll on the housing market. Forward-looking lending data showed that British mortgage approvals fell 12 per cent in March from a year earlier - the fourth consecutive month of falls. The pound was down 0.1 percent at $1.9963, moving further away from 26-year peaks of $2.0133 in mid-April.
On May 1, the dollar rose hitting a nine-week high against the yen, after a report showed US manufacturing expanding at its fastest pace in almost a year. Contrasting with recent weak economic reports that have weighed on the dollar, the headline number in the Institute for Supply Management's survey on manufacturing hit its highest level since May 2006. The euro was near session lows at $1.3610, down 0.2 percent but still near the $1.3683 all-time high hit last week, according to electronic trading platform EBS.
The dollar rose 0.3 percent to 119.74 yen, near a nine-week high at 119.90 and the psychologically important 120 level. Against the Swiss franc, the dollar rose to a two-week high of 1.2164 francs. The dollar has fallen sharply in the past year, tumbling to 26-year lows against sterling and lifetime lows against the euro, mainly due to slower US growth at a time when other major economies continue to expand.
It also hit a record high against the Swiss franc at 1.6522. Sterling was steady against the dollar, paring earlier gains driven by a survey showing UK retail sales growing at their fastest pace in nearly three years. Sterling had risen to $2.0074, approaching last month's 26-year highs of $2.0133, before trimming gains to $2.0040.
On May 2, the dollar edged up in thin trade, briefly brushing a two-month high against the yen, as dealers scaled back bets that the greenback would slide ahead of upcoming data on US job growth in April. The advance added to dollar gains after data showed manufacturing activity in April grew at its quickest pace in nearly a year. The euro was down 0.1 percent at $1.3592, off last week's record high above $1.3680. It briefly touched 1.3612, a session peak, on a report that euro zone ministers are not concerned about the currency's strength.
The dollar was up 0.3 per cent against the yen at 120.08 yen. Earlier, it hit a two-month high near 120.30 yen. Sterling was one of the biggest movers on the day, falling 0.5 percent to $1.9890 and below the psychologically important $2.00 level for the first time since mid-April. Trading volume was fairly light on the day, with traders outside the United States taking an extended May Day holiday. The pound was down around half a percent at $1.9903 and the euro was up 0.4 percent versus the pound to 68.30 pence. The dollar was up across the board after surprisingly strong growth in March US factory orders cast further doubt on how soft the US economy actually is.
On May 3,the dollar edged up in thin trade, briefly brushing a two-month high against the yen, as dealers scaled back bets that the greenback would slide ahead of upcoming data on US job growth in April. The advance added to dollar gains after data showed manufacturing activity in April grew at its quickest pace in nearly a year. Market participants, though, still expect US interest rates to fall later this year to stimulate a slowing economy, making previous day’s gains look more like a brief speed bump in the dollar's steady grind lower against its major rivals.
The euro was down 0.1 per cent at $1.3592, off last week's record high above $1.3680. It briefly touched 1.3612, a session peak, on a report that euro zone ministers are not concerned about the currency's strength. The dollar was up 0.3 percent against the yen at 120.08 yen. Earlier, it hit a two-month high near 120.30 yen. Sterling was one of the biggest movers on the day, falling 0.5 percent to $1.9890 and below the psychologically important $2.00 level for the first time since mid-April.
At the close of the week on May 4, most of the markets were closed, as traders outside the US extended May Day holiday. The dollar maintained a firm tone, rising to a 2-1/2 week high against a basket of currencies after the previous session's firmer US data lifted sentiment ahead of a key US jobs report due later. A survey, which showed eurozone service sector growth dipped unexpectedly in April, with Italy's index hitting its weakest since October 2005, weighed briefly on the euro.
The euro was flat on the day at $1.3557, some way off the all-time high of $1.3682 set last week. The dollar was also steady at 120.35 yen after hitting a two-month high a day earlier. The euro was steady at 163.17 yen. Trading was again thin with markets in China and Japan shut for a holiday. The Australian dollar fell to US $0.8172, falling below $0.82 for the first time in four weeks after the central bank lowered its forecast for underlying inflation, suggesting rates were on hold for the rest of the year.
Sterling was up versus a broadly weaker dollar after US data showed April jobs growth posted its slimmest gain in more than two years, signalling a softening job market in a sluggish economy. the pound was up 0.2 per cent versus the dollar at $1.9922. It hit a 26-year high above the psychologically key level of $2 last month on expectations for higher British interest rates.
The rupee/dollar parity commenced the week on a stable note amid range bound trading in the inter bank market. The rupee held its weekend levels on April 30 and traded unchanged versus the dollar at Rs60.65 and Rs60.66 on comfortable supply poison of the American currency. Trading in currencies remained suspended on May 1, as markets were closed on account of public holiday, being Labour Day.
