THE rupee displayed a strong performance against the dollar last week, aided in part by the increase in foreign exchange reserves following the $1.2bn HBL transaction. However, the local currency lost value against the euro.

The rupee started the week in the interbank market by picking up one-paisa for buying and two paisas for selling, as the dollar slipped to Rs101.85 and Rs101.86 in the first trading session, against the previous week’s close of Rs101.86 and Rs101.88.

It then rose by six paisas for buying and four paisas for selling in the second trading session, sending the greenback down to Rs101.79 and Rs101.82. The rupee picked up a further 12 paisas for buying and 13 paisas for selling in the third trading session, pushing the dollar down to Rs101.67 and Rs101.69.

The rupee’s rising streak continued in the fourth trading session, as it rose by another two paisas, sending the dollar down to Rs101.65 and Rs101.67. It then went up by a further 15 paisas for buying and 12 paisas for selling in the last trading session, as the dollar closed the week at Rs101.50 and Rs101.55.

During the week, the dollar depreciated by 36 paisas for buying and 33 paisas for selling in the interbank market.

In the open market, the rupee displayed a largely stable performance against the dollar last week. It remained unchanged from the prior week’s closing level of Rs102.40 and Rs102.60 in the first two trading sessions of the week.

The rupee appreciated by around 36 paisas against the dollar in interbank dealings and remained unchanged in the open market last week

In the third trading session, the rupee edged up by five paisas, sending the greenback lower at Rs102.35 and Rs102.55. However, the dollar rebounded in the fourth trading session, picking up five paisas to revert to Rs102.40 and Rs102.60.

The rupee-dollar parity then remained unchanged at this level in the last trading session. As a result, the dollar remained flat against the rupee on a net basis in the open market last week.

Meanwhile, the rupee weakened against the euro last week after its recent rising streak. Yet, it had started the week by gaining 50 paisas in the first trading session, sending the euro down to Rs108.25 and Rs108.50 against the prior week’s close of Rs108.75 and Rs109.00.

It rose by a further 55 paisas in the second trading session, as the single currency dropped to Rs108.20 and Rs108.45.

However, the euro bounced back in the third trading session, regaining five paisas against the rupee to close the day at Rs108.25 and Rs108.50.

The rupee then suffered a bigger fall of 125 paisas in the fourth trading session, as the euro ended the day at Rs109.50 and Rs109.75.

The single currency finally picked up a further 65 paisas in the last trading session to close the week up at Rs110.15 and Rs110.40.

As a result, the euro appreciated by a net 90 paisas against the rupee last week.

Published in Dawn, Economic & Business, April 20th , 2015

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