THE rupee largely remained stable against the dollar in the local currency market last week, amid some mild fluctuations. Ample dollar supply from overseas Pakistanis ahead of Eidul Fitr largely met demand for the currency in the open market.

On the interbank market, the rupee started the week by gaining 11 paisas against the dollar, which ended the first trading session at Rs98.82 and Rs98.84, against the prior week’s close of Rs98.93 and Rs98.95.

But the shed two paisas in the second trading session, as the dollar rose to Rs98.84 and Rs98.86. The local currency then managed to gain 14 paisas in the third trading session, as the greenback ended the day at Rs98.70 and Rs98.72.

The rupee appreciated by 19 paisas against the dollar in interbank dealings, but lost five paisas in the open market last week

However, the dollar picked up two paisas in the fourth trading session and ended the day at Rs98.72 and Rs98.74. The dollar gained another two paisas in the fifth trading session, and closed the week at Rs98.74 and Rs98.76. The rupee appreciated by 19 paisas against the dollar in the interbank market last week.

In the open market, slight activity was noticed on the banks’ foreign exchange counters as Pakistani overseas workers continue to send remittances to their families ahead of the Eid festival.

The rupee commenced the week with a gain of 10 paisas, as the greenback slipped to Rs98.70 and Rs98.90, against the prior week’s close of Rs98.80 and Rs99.00. The rupee-dollar parity remained unchanged at this level in the second trading session.

The rupee then shed five paisas in the third trading session, as the dollar ended the day at Rs98.75 and Rs98.95. But the local currency recovered five paisas in the fourth trading session, as the dollar retreated to the prior week’s closing level of Rs98.80 and Rs99.00.

However, a slight pickup in activity on Friday helped the dollar rise to Rs 98.85 and Rs 99.05 after the rupee shed five paisas in the last trading session. On a weekly basis, the rupee was down five paisas against the dollar.

The rupee also fared positively against the euro last week. It commenced the week with a gain of 25 paisas, as the euro dipped to Rs133.00 and Rs133.25, against the prior week’s close of Rs133.25 and Rs133.50. The local currency picked up another 30 paisas in the second trading session, as the euro slipped to Rs132.70 and Rs132.95.

The rupee gained a further 30 paisas over the next two trading sessions, as the single currency dropped to Rs132.40 and Rs132.65 by the end of the fourth trading session, reportedly its strongest level since July last year. It was down by 85 paisas in the first four trading sessions.

The single currency then managed to gain 10 paisas in the last trading session to end the week at Rs132.50 and Rs132.75. The rupee appreciated by 75 paisas against the euro during the week in review.

Published in Dawn, Economic & Business, July 28th, 2014