COMMENCING in positive mode on the interbank market, the rupee/dollar parity showed a stable trend amid minor variations last week.

The rupee inched up by one paisa against the dollar in the first trading session when dollar was seen changing hands at Rs104.87 and Rs104.88 after slipping from the prior weekend’s levels of Rs104.88 and Rs104.89.

As a result of fresh surge in the demand for dollar to cover import bills, the rupee hit a 16-month low at Rs104.89 and Rs104.90 and lost two paisas against the dollar on the buying counter and one paisa on the selling counter.

In the third session due to dull trading, the rupee traded unchanged at Rs104.89 and Rs104.90 for the second day.

As a result of a fresh surge in the demand for dollar to cover import bills, the rupee hit a 16-month low and lost two paisas against the dollar

In the fourth session, the rupee gained three paisas amid a soft dollar demand and the session closed at Rs104.86 and Rs104.87, a level last seen on June 12.

The week ended on a negative note as the rupee lost 10 paisas the last session, pushing dollar at Rs104.87 and Rs104.88. On a WoW basis, however, the rupee managed to gain one paisa.

In the open market, the rupee commenced the week on a stable note, trading flat in the first two sessions, at Rs105.90 and Rs106.10 for two straight days. However, the dollar slipped to Rs105.80 and Rs106.00 as the rupee gained 10 paisas in the third session because of sluggish trading activities.

The dollar edged higher in the open market owing to improved demand from Umrah pilgrims in the fourth session. The rupee shed 10 paisas and concluded the session against the dollar at Rs105.90 and Rs106.10.

The parity remained unchanged in the last session. The dollar closed flat at Rs105.90 and Rs106.10 for the second successive day.

Against euro, the rupee traded range-bound last week. Commencing on a negative note, the rupee lost 20 paisas on the buying counter and 25 paisas loss on the selling counter in the first session pushing the euro to Rs118.20 and Rs119.25.

In the second trading session, the rupee gained against euro, 90 paisas on the buying counter and 65 paisas on the selling counter. The euro descended to Rs117.30 and Rs118.60.

Continuing an upward trend for the second day, the rupee further gained 10 paisas on the buying counter and 40 paisas on the selling counter sending euro to Rs117.20 and Rs118.20 in the third session.

In the fourth session, however, the euro managed to stage a partial recovery against the rupee, posting a 30 paisas gain after posting a Rs1.05 loss in the previous two session to trade slightly higher against the rupee at Rs117.50 and Rs118.50. The rupee extended overnight slide against the euro in the last trading session and suffered 25 paisas loss before closing the week at Rs117.75 and Rs118.75.

Published in Dawn, The Business and Finance Weekly, June 26th, 2017