AMPLE dollar supply in the local currency market was said to have stabilised the rupee last week. The country’s forex reserves position also improved after receiving $706m from the World Bank on Thursday.

Nonetheless, the rupee had commenced the week in the interbank market with a loss of two paisas, which had pushed the dollar to Rs101.80 and Rs101.82 in the first trading session against the prior week’s close of Rs101.78 and Rs101.80.

The rupee shed another one-paisa in the second trading session, as the greenback rose marginally to Rs101.82 and Rs101.83.

The local currency then bounced back in the third trading session, regaining four paisas for buying and three paisas for selling, sending the dollar down to Rs101.78 and Rs101.80. The rupee-dollar parity remained unchanged in the fourth trading session.

The rupee inched up by one-paisa for selling but remained unchanged for buying in the last trading session, as the dollar closed the week at Rs101.78 and Rs101.79. As a result, the dollar stayed virtually unchanged on a weekly basis in the interbank market.

The dollar stayed virtually unchanged in interbank dealings but rose by 10 paisas in the open market last week

In the open market, the rupee commenced the week by losing 10 paisas, sending the dollar up at Rs102.70 and Rs102.90, against the previous week’s close of Rs102.60 and Rs102.80.

It then dropped another 20 paisas in the second trading session, allowing the greenback to end the day at Rs102.90 and Rs103.10. In the third trading session, the rupee stayed unchanged for buying but slipped five paisas for selling, ending the day at 102.90 and 103.15.

But the dollar dropped below the Rs103-mark in the fourth trading session after the rupee gained 10 paisas for buying and 15 paisas for selling at 102.80 and 103.00.

The rupee then picked up another 20 paisas for buying and 10 paisas for selling in the last trading session, as the dollar closed the week at Rs102.60 and Rs102.90.

On a net basis, the rupee stayed unchanged against the dollar for buying but depreciated by 10 paisas for selling in the open market last week.

Meanwhile, the rupee displayed a good performance against the euro. Yet, it had started the week by shedding 40 paisas, as the euro rose to Rs115.80 and Rs116.80 in the first trading session from the prior week’s close of Rs115.40 and Rs116.40.

However, the rupee re­­bounded in the second trading session, picking up 80 paisas to send the euro down at Rs115.00 and Rs116.00. The rupee-euro parity remained unchanged at this level in the third trading session.

And with concerns rising about Greece’s membership in the currency bloc, the euro fell 60 paisas in the fourth trading session to Rs114.40 and Rs115.40.

The rupee then gained 20 paisas on Friday, as the euro closed the week at Rs114.20 and Rs115.20.

Published in Dawn, Economic & Business, June 29th, 2015

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