The rupee fell steeply against the dollar in the open market last week, while staying close to the 102-level in the interbank market.

The gap between interbank and open market rates for the dollar continued to widen, as some dealers reported that the central bank has been buying dollars from the interbank to keep its reserves position intact.

The local currency commenced trading in the interbank market by shedding seven paisas for buying and 10 paisas for selling, allowing the dollar to end the first trading session at Rs102.04 and Rs102.08, against the prior week’s closing level of Rs101.97 and Rs101.98.

But the rupee managed to recover two paisas for buying and four paisas for selling in the second trading session, as the dollar slipped to Rs102.02 and Rs102.04.

The rupee then picked up five paisas for buying and four paisas for selling in the third trading session, sending the dollar down to Rs101.97 and Rs101.98.

But it then fell by two paisas in the fourth trading session, as the dollar ended the day at Rs101.99 and Rs102.00. The rupee lost one-paisa in the last trading session, as the greenback closed the week at Rs102.00 and Rs102.02.

The rupee depreciated by three paisas for buying and four paisas for selling against the dollar last week.

The dollar appreciated by around three paisas in interbank dealings and by 40 paisas in the open market last week

In the open market, the rupee started the week by losing a big 25 paisas for buying and 20 paisas for selling, sending the greenback up at Rs103.35 and Rs103.55, against the previous week’s close of Rs103.10 and Rs103.35.

However, the local currency recovered five paisas in the second trading session, as the dollar dipped slightly to Rs103.30 and Rs103.50. But it then lost 10 paisas in the third trading session, allowing the dollar to rise to Rs103.40 and Rs103.60.

The rupee suffered another 10-paisa loss in the fourth trading session, as the dollar rose to Rs103.50 and Rs103.70 for the day. The rupee-dollar parity then remained unchanged at this level in the last trading session.

During the week, the dollar gained 40 paisas for buying and 45 paisas for selling in the open market.

Meanwhile, the rupee managed to recover some lost ground against the euro last week. It started the week by rising 50 paisas for buying and 25 paisas for selling, sending the euro down to Rs113.50 and Rs114.50 against the prior week’s close of Rs114.00 and Rs114.75.

It picked up another 50 paisas in the second trading session, as the single currency dropped to Rs113.00 and Rs114.00. The rupee-euro parity then remained unchanged at this level in the third and fourth trading sessions.

However, the euro then bounced back in the last trading session, gaining 50 paisas to close the week at Rs113.50 and Rs114.50. The rupee appreciated by a net 50 paisas for buying and 25 paisas for selling against the euro last week.

Published in Dawn, Economic & Business, June 1st, 2015

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