THE rupee came under pressure from both the dollar and the euro in the forex market last week. However, by the end of the week, it managed to stay virtually unchanged against the greenback in the interbank market.

The local currency started the week in the interbank market with with a loss of 21 paisas, as the dollar ended the first trading session at Rs98.53 and Rs98.56, over the prior week’s close of Rs98.32 and Rs98.35

But the rupee recovered three paisas for buying and one-paisa for selling, as the dollar finished the second trading session at Rs98.50 and Rs98.55. The local currency then posted gains of 18 paisas for buying and 20 paisas for selling in the third trading session, as the greenback ended the day down at Rs98.32 and Rs98.35.

The rupee depreciated by one-paisa against the dollar in interbank dealings and by 15 paisas in the open market last week

In the fourth trading session, the dollar shed seven paisas for buying and five paisas for selling to end the day at Rs98.25 and Rs98.30. But it managed to regain seven paisas for buying and four paisas for selling in the last trading session to close the week at Rs98.32 and Rs98.34. Against the rupee, the dollar on the interbank market was up one-paisa on the selling counter on a weekly basis.

In the open market, the rupee started the week with a loss of five paisas, as the greenback ended the first trading session at Rs99.60 and Rs99.80, against the prior week’s close of Rs99.55 and Rs99.75. The dollar gained another 10 paisas in the second trading session to reach Rs99.70 and Rs99.90. The rupee-dollar parity remained unchanged at this level in the third trading session.

In the fourth trading session, the rupee managed to gain five paisas, sending the dollar lower to Rs99.65 and Rs99.85. But the local currency lost five paisas in the last trading session, as the dollar closed the week at Rs99.70 and Rs99.90. During the week, the rupee hit its highest level against the dollar at Rs99.60-80 on June 16 and lowest at Rs99.70-90 on June 20. But the dollar appreciated by 15 paisas in the open market last week.

Meanwhile, the rupee fared relatively poorly against the euro last week. The rupee-euro parity remained unchanged at the prior week’s close of Rs134.25 and Rs134.50 in the first trading session. The next day, the rupee shed 50 paisas, sending the euro up at Rs134.75 and Rs135.00.

The rupee-euro parity remained inert at this level in the third trading session.

However, the local currency then lost a big 75 paisas in the fourth trading session, as the euro rallied to Rs135.50 and Rs135.75.

In the fifth trading session, the rupee managed to pick up 50 paisas, as the euro closed the week at Rs135.00 and Rs135.25.

The euro appreciated by 75 paisas against the rupee last week.

In three weeks of June, the euro has traded between Rs134.25/50 and Rs134.25/50.

Published in Dawn, Economic & Business, June 23rd, 2014