PREVAILING political unrest kept the rupee under pressure for most of last week. And the dollar continued trading higher in the interbank market than the open market for the second straight week.

The rupee started last week at the interbank market with a big fall of 75 paisas, as the dollar ended the first trading session at Rs102.50 and Rs102.55, against the prior week’s close of Rs101.75 and Rs101.80.

The rupee posted another loss of 18 paisas for buying and 15 paisas for selling in the second trading session, sending the greenback up at Rs102.68 and Rs102.70. However, it regained 18 paisas for buying and 15 paisas for selling, as the greenback slipped back to Rs102.50 and Rs102.55 in the third trading session.

The rupee depreciated by 40 paisas against the dollar in interbank dealings and by 10 paisas in the open market last week

The local currency posted a fresh gain of 30 paisas for buying and 20 paisas for selling in the fourth trading session, as the dollar ended the day at Rs102.20 and Rs102.35. The rupee then gained five paisas for buying and 17 paisas for selling, with the dollar closing the last trading session at Rs102.15 and Rs102.18.

During the week, the dollar appreciated by 40 paisas for buying and 35 paisas for selling in the interbank market.

In the open market, the rupee started the week with a loss of 50 paisas, as the dollar ended the day at Rs102.00 and Rs102.20, against the prior week’s close of Rs101.50 and Rs101.70.

The rupee, however, regained 35 paisas in the second trading session, sending the greenback lower to Rs101.65 and Rs101.85. But it lost five paisas the next day, with the dollar last changing hands at Rs101.70 and Rs101.90.

In the fourth trading session, the rupee gained 10 paisas, with the dollar ending the day at Rs101.60 and Rs101.80. The rupee-dollar parity remained unchanged at this level in the last trading session. The greenback appreciated by 10 paisas in the open market last week.

However, the rupee fared differently against the euro. It commenced the week with a loss of 75 paisas, as the single currency ended the day at Rs133.50 and Rs133.75, against the prior week’s close of Rs132.75 and Rs133.00. The rupee-euro parity remained unchanged at this level in the second trading session.

The local currency then shed a big 100 paisas in the third trading session, as the euro ended the day at Rs134.50 and Rs134.75. However, the rupee managed to post a huge cumulative gain of 225 paisas in the fourth trading session, sending the euro lower to Rs132.25 and Rs132.50.

The rupee ended the week with another gain of 25 paisas, as the euro closed the last trading session at Rs132.00 and Rs132.25. During the week, the euro depreciated by 75 paisas.

Published in Dawn, Economic & Business, September 8th, 2014