In the local currency market, the rupee continued to be under pressure against the dollar despite a steadier trend amid sluggish trading activity last week.

Both the demand and supply of dollar remained almost in balance in the absence of corporate sector demand. However, dollars ups and downs against its major rivals in overseas trade exerted slight pressure on the rupee in the domestic market where the dollar managed to hit a nine-week high last week.

On the interbank market, the rupee/dollar parity showed minor changes amid sluggish trading activity last week.

The rupee traded in narrow band against the dollar, hovering in the Rs104.83/84 and Rs104.84/85 range throughout the week.

The week commenced on a negative note while the rupee/dollar parity remained unmoved in the last three trading sessions.

The rupee continued to trade flat for four straight days, ending the week unchanged at Rs104.84 and Rs104.85 as the forex market remained dull, amid squeezed dollar demand from importers.

During the week, the dollar on the interbank market managed to appreciate against the rupee by four-paisa on week on week basis.

Dollar’s ups and downs against its major rivals in overseas trade exerted slight pressure on the rupee in the domestic market where it managed to hit a nine-week high

In the open market, the dollar continues strong against the rupee. After the previous week’s last four sessions winning streak, the rupee turned negative against the dollar last week.

Commencing the week in minus, amid dull trading activity, the rupee traded against the dollar in a narrow band.

The rupee ended the week unchanged as the dollar continued to trade flat at Rs108.40 and Rs108.60 for the second consecutive day in the last trading session.

During the week, the rupee remained under pressure against the dollar despite a steadier trend.

The dollar in the open market appreciated by 20paisa against the rupee on a week on week basis.

Against euro, the rupee remained under pressure, hovering in the range between the low of Rs115.00/116.50 and the high of Rs113.60/115.10 amid fluctuations. Euro is showing strength since the start of 2017.

The rupee lost in the last trading session and slipped to a nine week low at Rs115.00 and Rs116.50 at the close of the week.

During the week in review, the rupee cumulatively suffered a loss of Rs1.75 in four sessions while gaining 25paisa in one session. As a result, the euro managed to gain Rs1.50 on week on week basis and was seen trading against the rupee at almost a two-month peak.

The rupee has depreciated by nearly two per cent against euro in the first two weeks of January.

Published in Dawn, Business & Finance weekly, January 16th, 2017