On the interbank market, the rupee in an abrupt move plunged 3.8 per cent against the dollar. The central bank did not intervene and allowed market forces to determine rupee value against the dollar.

Abrupt increase in demand amid short dollar supplies exerted downward pressure on the rupee, on Monday which sent the rupee to an all time low at Rs119.50 and Rs120.00 after trading almost flat Rs115.61 and Rs115.62 in the past 12 weeks.

The rupee continued its downslide on Tuesday enabling the dollar to hit fresh peak at Rs119.750 and Rs120.25.

Lower inflows weighed on the rupee despite almost nil demand for dollar. The rupee downslide persisted on Wednesday with the dollar attaining fresh peak at Rs120.25 and Rs120.50.

Trading last week was limited to three trading sessions ahead of long weekend on account of Eid holidays.

During the shortened week, the rupee on the interbank market posted a loss of up to Rs4.88 on week on week basis.

During the shortened week, the rupee on the interbank market posted a loss of up to Rs4.88 on week on week basis

In the open market, the rupee hit fresh lows last week after the third devaluation in the past seven months.

The rupee in the open market tumbled to record lows against the dollar on Monday, losing Rs3 at Rs121.00 and Rs121.50 against the prior week close at Rs118.00 and Rs118.50.

On Tuesday, the rupee remained flat on the buying counter but gained 25paisa against the dollar on the selling counter, changing hands at Rs121.00 and Rs121.25 amid low demand and sluggish market sentiments.

On Wednesday, the rupee failed to hold firm ground and further weakened against the dollar. It posted 20paisa loss on the buying counter and another 45paisa loss on the selling counter before slipping to Rs121.20 and Rs121.70 at the close of the third session.

During the week, the dollar in the open market surged by 2.7pc against the rupee on week on week basis with the rupee shedding Rs3.20 against the dollar. The rupee has so far depreciated by 12.5pc against the dollar in the open market since July last year.

Against euro, the rupee weakened sharply last week.

It posted loss of up to Rs2.75 in the first trading session to trade at Rs140.00 and Rs142.00 versus prior week close at Rs137.75 and Rs139.25.

Extending overnight losses in the second trading session, the rupee further posted 50paisa loss, changing hands at Rs140.50 and Rs142.50.

The parity moved flatly in the third trading session, showing no changeover the previous session.

The week ended with the rupee hitting its lowest level against the euro at Rs140.50 and Rs142.50. The euro gained up to Rs3.25 against the rupee last week.

Published in Dawn, The Business and Finance Weekly, June 19th, 2018