Trading operation was reduced to four sessions last week as all banks and trading centres in both sectors remained closed on account of Pakistan’s Independence Day celebrations.

During the week, the rupee witnessed a firmer trend against the dollar and euro in the local currency market.

However, the currency market remained dull, as a majority of market participants remained on the sidelines.

The dollar remained flat in value against the rupee in the interbank market on the back of dull interest from the corporate and import sector.

In the open market, on the other hand, the rupee posted gains against the dollar and euro amid sluggish trading activity.

The State Bank of Pakistan did not make any intervention in the market but continued to provide dollars to commercial banks for their foreign payments, preventing the rupee from falling against the dollar.

On the interbank market, the dollar commenced the week in plus as the rupee inched down on Tuesday. Trading in tight range, the dollar, showed a modest rise to Rs105.40 and Rs105.41 against the last closing at Rs105.39 and Rs105.40.

During the week, the rupee witnessed a firmer trend against the dollar and euro in the local currency market

On Wednesday, the dollar receded to the previous weekend level at Rs105.39 and Rs105.40.

The rupee sustained its stability in the interbank market against dollar on Thursday, trading flat at Rs105.39 and Rs105.40 for the second day in a row.

The rupee/dollar parity closed the week on a stable note as the rupee did not show any change on Friday and traded flat against the dollar at Rs105.39 and Rs105.40.

In the open market, the rupee was seen in recovery phase against the dollar last week.

The rupee commenced the week on a stable note as it continued to trade flat at Rs106.70 and Rs106.90 on Tuesday, unchanged from the previous week’s closing level.

On Wednesday, the dollar further slipped to Rs106.60 and Rs106.80, a level last seen on August.

On Thursday, the dollar weakness persisted against the rupee trading at Rs106.50 and Rs106.70.

The week ended unchanged as the rupee/dollar parity on Friday continued to trade flat at Rs106.50 and Rs106.70 for the second straight day.

On Tuesday the rupee traded at Rs124.50 and Rs126.00 against the euro and at Rs124.00 and Rs125.50 on Wednesday.

The euro downslide continued against the rupee on Thursday that sent the euro to fresh lows at Rs123.75 and Rs125.25.

On Friday, however, the euro managed to snap the losing streak trading at Rs124.00 and Rs125.50.

Published in Dawn, The Business and Finance Weekly, August 21st, 2017