THE rupee remained under pressure as demand for the dollar increased in the interbank market last week. As a result, the local currency traded higher in interbank dealings than in the open market.

In the interbank market, strong dollar demand in the opening session led the rupee to shed four paisas, sending the greenback up at Rs102.92 and Rs102.94, against the prior week’s close of Rs102.88 and Rs120.90. At one point during the day, the rupee had slipped past the 103-mark, but then managed to regain value before the end of trading.

However, the rupee recovered two paisas in the second trading session, with the dollar ending the day at Rs102.90 and Rs102.92. In the third trading session, the rupee shed three paisas, as the dollar closed the day at Rs102.93 and Rs102.95.

The dollar finally breached the Rs103-mark in interbank dealings when it gained six paisas in the fourth trading session and ended the day at Rs102.99 and Rs103.01.

The rupee depreciated by around 40 paisas against the dollar in both interbank and open markets last week

The rupee then lost another 26 paisas for buying and 29 paisas for selling in the last trading session, as the dollar closed the week up at Rs103.25 and Rs103.30, its highest since March 7. The rupee depreciated by around 40 paisas in the interbank market last week.

In the open market, the rupee commenced the week with a big loss of 30 paisas, as the dollar ended the first trading session at Rs102.80 and Rs103.00, against the prior week’s close of Rs102.50 and Rs102.70.

However, the dollar slipped to Rs102.70 and Rs102.90 in the second trading session after the rupee gained 10 paisas in the day. The rupee-dollar parity remained unchanged at this level in the third trading session.

The dollar then rose by five paisas in the fourth trading session, sending the rupee down at Rs102.75 and Rs102.95.

The greenback gained another 15 paisas in the last trading session to close the week at Rs102.90 and Rs103.10. The local currency depreciated by 40 paisas in the open market last week.

On the other hand, the rupee managed to stem its recent decline against the euro. However, it had started the week with a loss of 25 paisas, which took the euro to Rs130.75 and Rs131.00 from the prior week’s close of Rs130.50 and Rs130.75.

But the rupee picked up 50 paisas in the second trading session, sending the single currency down at Rs130.50 and Rs130.75. The rupee gained another 50 paisas in the third trading session, as the euro ended the day at Rs130.00 and Rs130.25. The rupee-euro parity remained unchanged at this level in the fourth trading session.

In the last trading session, the rupee suffered a loss of 25 paisas, as the euro closed the week at Rs130.25 and Rs130.50. The rupee managed to appreciate by a net 0.19pc against the euro last week. So far this month, the rupee hit its lowest against the euro at Rs131.00/25 on October 17, and the highest at Rs128.00/25 on October 4.

Published in Dawn, Economic & Business, October 27th, 2014