THE dollar gained momentum in the interbank market last week, amid some mild fluctuations. However, it dipped against the rupee in the open market as a result of increased dollar inflows from overseas Pakistanis ahead of Eid.

The rupee started the week in the interbank with a loss of four paisas, as the greenback ended the first trading session at Rs98.78 and Rs98.80, against the previous week’s close of Rs98.74 and Rs98.76. The local currency dipped by two paisas for buying and one-paisa for selling in the second trading session, as the dollar ended the day at Rs98.80 and Rs98.81.

In the third trading session, the rupee recovered two paisas for buying and one-paisa for selling, as the greenback last changed hands at Rs98.78 and Rs98.80. However, the rupee shed four paisas in the next trading session, as the greenback climbed to Rs98.82 and Rs98.84.

The dollar appreciated by 19 paisas in interbank dealings but depreciated by 10 paisas in the open market last week

The rupee then lost another 11 paisas in the final trading session, as the dollar closed the week at Rs98.93 and Rs98.95. During the week, the greenback appreciated by 19 paisas against the rupee in the interbank market.

Meanwhile, a slight pickup in trading activity was noticed in the open market last week. The rupee commenced the week with a rise of 10 paisas, as the dollar ended the first trading session at Rs98.80 and Rs99.00 against the prior week’s close of Rs98.90 and Rs99.10.

The rupee gained five paisas in the second trading session, as the dollar slipped to Rs98.75 and Rs98.95. The rupee-dollar parity remained unchanged at this level in the third trading session.

The local currency then posted another increase of 10 paisas in the fourth trading session, as the greenback dropped to Rs98.70 and Rs98.90. However, it lost 10 paisas in the final trading session, as the dollar closed the week at Rs98.80 and Rs99.00. But the rupee appreciated by 10 paisas in the open market last week.

Against the euro, the rupee started the week with a loss of 25 paisas, sending the single currency to Rs134.50 and Rs134.75, against the prior week’s close of Rs134.25 and Rs134.50.

But the rupee bounced back in the following two sessions, gaining a cumulative 80 paisas and sending the euro down to Rs133.20 and Rs133.45 by the third trading session. But the rupee then slipped by five paisas in the fourth trading session, as the euro ended the day at Rs133.25 and Rs133.50.

However, the rupee shed a big 110 paisas in the last trading session, as the single currency closed the week at Rs134.35 and Rs134.60, gaining a net 10 paisas against the rupee last week.

Published in Dawn, Economic & Business, July 21st, 2014