Mixed sentiments in the local currency market kept the rupee fluctuating either ways against the dollar and euro, ahead of a long weekend on account of Eid-ul-Azha.

No major development was witnessed and no panic buying of dollar was observed as the influx of foreign currency from expatriates was sufficient to meet importer and corporate sector requirements.

The market will remain closed from September 12 to September 14 on account of Eid Holidays.

The dollar on the interbank market lost against the rupee during the week

In overseas trade, the dollar more broadly traded down one per cent or more for the week against most major currencies.

On the interbank market, the rupee/dollar parity showed sharp variation amid range-bound trading last week.

Commencing the week in plus, the rupee closed the fourth trading session at a fresh four-month high of Rs104.38 and Rs104.40 against the dollar.

The local currency continued to gain due to ample foreign inflows available in the market amid dull demand. The rupee sustained firmness against the dollar, posting three-paisa gain in the last trading session before hitting a three month high of Rs104.35 and Rs104.37 at the close of the week. The dollar on the interbank market thus lost eight-paisa against the rupee in the week.

In the open market, the rupee/dollar parity moved both ways in line with interbank market trends. Extending weekend firmness, the rupee commenced the week against the dollar in plus.

The week ended on a stable with the rupee trading flat against the dollar at Rs104.90 and Rs105.10 for the second consecutive day in the last trading session after the dollar rose in overseas trade on remarks by Federal Reserve policymakers that helped boost investor expectations of a near-term increase in US interest rates.

On week on week basis, the dollar in the open market lost ten-paisa against the rupee last week.

Against euro, the rupee remained escalated between the high of Rs115.60/117.10 and the low of Rs117.0/118.50 last week.

Extending weekend gains, the rupee commenced the week in plus and gained 60paisa in the first trading session over the prior

weekend’s Rs116.20 and Rs117.70 that pushed euro to seven-week lows at Rs115.60 and Rs117.10.

The week finally ended on a positive note after the rupee managed to snap three consecutive sessions of losing streak versus euro, recovering 25paisa in the last trading session. It reverted to Rs116.75 and Rs118.25 at the close of the week.

During the week, the euro still managed to post 55paisa gain against the rupee on week on week basis after hitting a two-week high against the dollar in European trade after the European Central Banks left interest rates unchanged and stopped short of a formal commitment to further expand its huge asset-purchase program.

Published in Dawn, Business & Finance weekly, September 12th, 2016