Chart by RA

AFTER suffering big drops over the past few weeks, the rupee managed to finally stabilise against the dollar last week.

Analysts partly attributed this to the demand for the dollar tapering off as the Hajj season drew to a close.

On the interbank market, the rupee commenced the week by gaining 10 paisas for buying and seven paisas for selling, as the dollar dropped to Rs104.33 and Rs104.38 in the first trading session, against the prior week’s closing level of Rs104.43 and Rs104.45.

The rupee then slipped by one-paisa for buying but gained two paisas for selling in the second trading session, as the dollar ended the day at Rs104.34 and Rs104.36.

The dollar depreciated by five paisas in interbank dealings and by 10 paisas in the open market last week

The local currency suffered a loss of three paisas for buying and four paisas for selling on fresh demand from banks and importers, with the greenback ending the third trading session at Rs104.37 and Rs104.40.

The rupee then dipped by one-paisa for buying but stayed unchanged for selling in the fourth trading session amid lacklustre trading, with the dollar ending the day at Rs104.38 and Rs104.40. The rupee-dollar parity remained unchanged at this level in the last trading session.

As a result, the dollar depreciated by five paisas in the interbank market last week.

In the open market, the rupee showed a steadier trend. In the first trading session, the rupee-dollar parity remained unchanged at the prior week’s closing level of Rs104.40 and Rs104.60.

The rupee then rose by 10 paisas in the second trading session, sending the greenback down at Rs104.30 and Rs104.50. And the rupee-dollar parity stayed unchanged at this level for the rest of the week, as higher remittances ahead of Eid-ul-Azha and the US Federal Reserve holding off an interest rate increase kept the dollar’s value in check.

Analysts also attributed this to the dollar dropping against global currencies in the wake of the Fed’s monetary policy decision. On a weekly basis, the dollar depreciated by 10 paisas in the open market.

However, the rupee weakened against the euro, losing most of its earlier gains in the latter half of the week. It had started the week by picking up 10 paisas, with the euro ending the first trading session at Rs117.60 and Rs118.60 against the prior week’s close of Rs117.70 and Rs118.70.

The rupee gained a further 85 paisas in the second trading session, sending the euro down to Rs116.75 and Rs117.75. It rose by another 65 paisas in the third trading session, as the euro dropped to Rs116.10 and Rs117.10.

However, the rupee failed to sustain its rise and shed 75 paisas in the fourth trading session, allowing the euro to rise to Rs116.75 and Rs118.75.

The rupee then lost 135 paisas in the last trading session, as the euro closed the week at Rs118.20 and Rs119.20. The euro appreciated by 50 paisas last week.

Published in Dawn, Business & Finance weekly, September 21st, 2015

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