The rupee came under pressure against the dollar in both the interbank and open markets last week. A surge in demand for the reserve currency in the open market led it to breach the Rs103-mark.

In the interbank market, the rupee started the week by losing two paisas, as the dollar ended the first trading session at Rs101.95 and Rs101.97 against the prior week’s close of Rs101.93 and Rs101.95.

But it managed to regain five paisas in the second trading session, as the greenback dipped slightly to Rs101.90 and Rs101.92. The rupee-dollar parity remained unchanged at this level in the third trading session.

However, the dollar regained three paisas in the fourth trading session and ended the day at Rs101.93 and Rs101.95. The rupee lost another four paisas for buying and three paisas for selling in the last trading session, allowing the dollar to close the week at Rs101.97 and Rs101.98.

The rupee depreciated by around four paisas in interbank dealings and by 40 paisas in the open market last week

As a result, the dollar appreciated by four paisas for buying and three paisas for selling in the interbank market last week.

A rise in demand for the dollar was witnessed in the open market last week. The rupee started the week by tumbling 20 paisas in the first trading session, sending the dollar up at Rs102.80 and Rs103.00 against the prior week’s close of Rs102.60 and Rs102.80.

It lost another 10 paisas in the second trading session, as the dollar breached the Rs103-mark and ended the day at Rs102.90 and Rs103.10. The rupee’s slide was reportedly stemmed by an injection of dollars by the central bank in the third trading session. It regained 10 paisas and ended the day at 102.80 and 103.00.

However, it shed 10 paisas in the fourth trading session, allowing the dollar to rise back to Rs102.90 and Rs103.10. Increased dollar demand from importers in the last trading session led the rupee to lose a further 10 paisas, as the greenback closed the week at Rs103.00 and Rs103.20.

The rupee depreciated by a net 40 paisas in the open market last week.

However, the rupee displayed a different performance against the euro. It rose by 10 paisas in the first trading session, sending the euro down to Rs117.20 and Rs117.45 from the prior week’s close of Rs117.30 and Rs117.55.

It then gained a big 220 paisas in the second trading session, as the euro ended the day at Rs115.00 and Rs115.25. It picked up another 75 paisas in the third trading session and last changed hands at 114.25 and 114.50.

However, the rupee slipped by 25 paisas in the fourth trading session, as the euro managed to rise to Rs114.50 and Rs114.75. The rupee then dropped another 50 paisas in the last trading session, allowing the euro to close the week at Rs115.00 and Rs115.25.

The rupee appreciated by 230 paisas against the euro last week.

Published in Dawn, Economic & Business, May 25th, 2015

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