After posting strong gains in the past couple of weeks, the rupee lost value against both the dollar and the euro last week.

The local currency commencing the week at the interbank market by shedding seven paisas for buying and eight paisas for selling counter, as the dollar ended the first trading session at Rs101.72 and Rs101.75, against the prior week’s close of Rs101.65 and Rs101.67.

The rupee lost another 13 paisas in the second trading session, as the greenback rose to Rs101.85 and Rs101.88. However, the rupee recovered six paisas for buying and seven paisas for selling in the third trading session after the slipped to Rs101.79 and Rs101.81.

In listless trade in the fourth trading session, the rupee edged up by one-paisa, as the dollar ended the day at Rs101.78 and Rs101.80.

But the local currency lost nine paisas for buying and 10 paisas for selling in the last trading session reportedly due to the buying of dollars by banks and importers. As a result, the greenback closed the week at Rs101.87 and Rs101.90.

During the week, the dollar appreciated by 22 paisas for buying and 23 paisas for selling in the interbank market. However, the rupee was up a net 1.01pc in November.

The dollar appreciated by around 22 paisas against the rupee in interbank dealings and by 15 paisas in the open market last week

In the open market, the rupee started the week with a sharp loss of 40 paisas, sending the dollar up at Rs102.60 and Rs102.80, against the prior week’s closing level of Rs102.20 and Rs102.40. The rupee-dollar parity remained unchanged in the second trading session.

The rupee then managed to gain 30 paisas in the third trading session, as the dollar dropped to Rs102.30 and Rs102.50. The local currency picked up a further 10 paisas in the fourth trading session, sending the dollar lower to Rs102.20 and Rs102.40.

However, the rupee shed 15 paisas for buying and five paisas for selling in the last trading session, as the dollar closed the week up at Rs102.35 and Rs102.45. The greenback appreciated by 15 paisas for buying and five paisas for selling in the open market last week. Yet, the rupee was up a net 55 paisas against the dollar in November.

The rupee fared similarly against the euro as well. It started the week by losing 25 paisas, as the single currency ended the first trading session at Rs127.25 and Rs127.50, against the prior week’s close of Rs127.00 and Rs127.25. The rupee-euro parity remained unchanged in the second trading session.

The rupee then shed another 25 paisas in the third trading session, sending the euro up at Rs127.50 and Rs127.75. However, it managed to regain 30 paisas in the fourth trading session, as the euro slipped to Rs127.30 and Rs127.55.

The rupee posted rose by another five paisas in the last trading session, as the euro closed the week at Rs127.25 and Rs127.50. Yet, the euro was up 25 paisas over the week.

Published in Dawn, Economic & Business, December 1st , 2014