THE rupee managed to reverse its downward trend against the dollar in the local currency market last week, and ended up gaining 15-paisa in the interbank market.
Some analysts attributed this to Finance Minister Ishaq Dar’s hard-hitting statement last week that speculators were responsible for inflating the value of the dollar, and that the government would bring the greenback to its previous rate of Rs98-99 within three months.
Mr Dar’s statement came after the dollar had appreciated by roughly 12 per cent against the rupee since January. The deteriorating law and order situation, falling forex reserves and rise in speculative trading were all exerting downward pressure on the rupee.
The rupee started last week on the interbank market with a four-paisa gain against the dollar, as the greenback ended the first trading session at Rs108.50 and Rs108.54, against the previous week’s close of Rs108.54 and Rs108.58.
However, the rupee suffered a 10-paisa loss on the buying counter and 11-paisa loss on the selling counter in the second trading session, as the dollar ended the day at Rs108.60 and Rs108.65. The rupee then bounced back in the third trading session by gaining 10-paisa, as the dollar closed the day at Rs108.50 and Rs108.55.
The rupee managed to recover another three-paisa on the buying counter and four-paisa on the selling counter against the greenback in the fourth trading session, as the dollar last traded at Rs108.52 and Rs108.56.
The local currency then gained 12-paisa against the dollar on the buying counter and 13-paisa on the selling counter in the last trading session, as the greenback ended the week down at Rs108.40 and Rs108.43. Thus, the rupee appreciated by almost 0.14 per cent against the dollar in the interbank market last week.
The rupee gained more sharply against the dollar in the open market last week. It started the week with a 10-paisa gain on the buying counter and 15-paisa gain on the selling counter in the first trading session, as it pushed the dollar down to Rs109.40 and Rs109.55, from the preceding week’s close of Rs109.50 and Rs109.70.
The rupee gained another 10-paisa on the buying counter and five-paisa on the selling counter against the greenback in the second trading session, which ended the day at Rs109.30 and Rs109.50. The dollar further slipped to Rs109.10 and Rs109.25 after the rupee picked up 20-paisa on the buying counter and 25-paisa on the selling counter in the third trading session.
The rupee continued to exert downward pressure on the dollar for the fourth straight day, gaining 80-paisa on the buying counter and 75-paisa on the selling counter, which reportedly sent the greenback to a five-week low of Rs108.30 and Rs108.50 in the fourth trading session.
The local currency ended the week with a 70-paisa gain against the dollar, which closed the last trading session at Rs108.20 and Rs108.40.
The rupee also managed to rise against the European single currency last week, amid some fluctuations. It commenced the week with a 25-paisa gain against the euro, which ended the first trading session at Rs147.0 and Rs147.25, against the prior week’s close of Rs147.25 and Rs147.50.
But the euro bounced back in the second trading session, after regaining 25-paisa against the rupee to close the day at Rs147.25 and Rs147.50. The rupee-euro parity then remained unchanged at this level in the third trading session.
The rupee then rebounded sharply against the euro after it gained 50-paisa in the fourth trading session, pushing the common currency down to Rs146.75 and Rs147.00.
However, the local currency shed 45-paisa against the euro in the last trading session, as the European currency ended the week at Rs147.20 and Rs147.45. The rupee managed to appreciate by five-paisa against the euro last week.
On the international front, the dollar climbed to a more than six-month high against the yen in New York’s first trading session, rising as high as 103.09 yen, its strongest since May 23, and it was last up 0.6 per cent at 102.98 yen. The yen continued to struggle after falling about four per cent in November against the dollar.
The euro fell against the dollar, down 0.4 per cent to $1.3537, retreating from the prior weekend’s one-month high of $1.3621. In London, sterling rose 0.35 per cent to $1.6443, its strongest since August 2011.
On December 3, the euro rose 0.4 per cent against the dollar to $1.3593. Against the yen, the dollar fell 0.6 per cent to 102.30 yen after reaching 103.37 yen in Asian trading. That was close to its 2013 high of 103.73 yen — a level dollar bulls have been targeting.
In London, the pound rose to $1.6437 from $1.6393 beforehand having hit $1.6443 on December 2, its highest in more than two years. It was last trading at $1.6405, up 0.3 per cent.
On December 4, the dollar was 0.3 per cent lower against the yen at 102.21 yen, having traded as high as 102.83, while the euro was little changed at $1.3588, off the session low of $1.3527.
The pound traded at $1.6350 in London, having hit a two-year high of $1.6443 on December 2.
On December 5, the euro rose to a five-week high against the dollar, up 0.5 per cent to $1.3667, after climbing as high as $1.3674, its strongest since the end of October.
The dollar briefly pared losses against the yen and was last down 0.6 per cent at 101.73 yen. In London, sterling fell 0.4 per cent against the dollar to $1.6320.
At the close of the week on December 6, the dollar rose against the yen, jumping 0.8 per cent to 102.58 yen, having hit a session peak of 102.89 yen, and then edged back towards a six-month high of 103.37 yen it had set earlier in the week.
The euro hit a session low of $1.3627 before rebounding to hit a five-week high of $1.3693. It was last at $1.3685, up 0.1 per cent on the day. Sterling was up 0.2 per cent at $1.6365 against the dollar in London trade.