THE local currency market witnessed mixed trend this week with the rupee trading in narrow ranges and ending almost flat against dollar and euro.

Since July this year, no major development has been observed in the rupee/dollar parity which had remained traded between Rs85.50 and Rs85.90 in the past five months. Against euro, however, the rupee had moved both ways, fluctuating between Rs103.50 and Rs121.0 in the same period.

On the inter-bank market this week, the rupee commenced on a positive note against dollar as it posted 5 paisa gain in the first trading session and traded at Rs85.80 and at Rs85.85 on December 6 after closing last week at Rs85.85 and Rs85.90. On December 7, the rupee further extended its overnight firmness against greenback, picking up 20 paisa to close the second trading session at Rs85.60 and Rs85.65 per US dollar.

In the third trading session however, the rupee failed to retain its overnight firmness and slipped against the dollar, changing hands at Rs85.72 and Rs85.76 after shedding 12 paisa on the buying counter and another 11 paisa on the selling counter on December 8. The rupee, however, posted a marginal rise against dollar in the fourth trading session, gaining two paisa on the buying counter and one paisa on the selling counter to close the day at Rs85.70 and Rs85.75 on December 9.

In the last trading session on December 10, rising dollar demand exerted downward pressure on the rupee which drifted lower by 5 paisa, closing the week against dollar at Rs85.75 and Rs85.80. During the week in review, however, the rupee in the inter-bank market gained 10 paisa against the dollar on week over week basis.

In the open market, the rupee/dollar parity remained fluctuated this week. The rupee failed to hold its weekend firmness against dollar on the opening day of the week, shedding 15 paisa on the buying counter and 10 paisa on the selling counter to trade at Rs85.75 and Rs85.90 in the first trading session after closing previous week at Rs85.60 and Rs85.80. The rupee, however, managed to retain its weekend level in the second trading session as it picked up 15 paisa and traded against the dollar at Rs85.60 and Rs85.75 on December 7.

Upward trend persisted for the second day in a row on December 8, when the rupee extended its overnight firmness versus dollar after posting 10 paisa gain in the third trading session to change hands at Rs85.50 and Rs85.65. The rupee failed to hold firm ground against the dollar in the fourth trading session and revert back to December 7 position after losing 10 paisa to trade at Rs85.60 and Rs85.75 in relation to dollar on December 9. The rupee traded unchanged at its overnight levels versus dollar in last trading session on December 10. On week over week basis, the rupee in the open market lost five paisa on the selling counter this week.

Versus the European single common currency, the rupee maintained its rising trend this week. The week commenced on a positive note, with euro changing hands at Rs113.36 and Rs113.86 on December 6 after the rupee posted 59 paisa gain over previous weekend’s level of Rs113.95 and Rs114.45. Another 29 paisa gain in rupee value in the second trading session pushed euro further down at Rs113.65 and Rs114.15 on December 7.

The rupee firmness versus euro prevailed for the third consecutive day on December 8, when the rupee picked Rs1.35 more, pushing euro down further to trade at Rs112.30 and Rs112.80. Cumulative gain of Rs2.23 in rupee value in the first three trading sessions had pushed euro to the week’s lowest level.

In the fourth trading session, however, the euro managed to rebound and pushed the rupee down at Rs113.10 and Rs113.60 after recovering 80 paisa on December 9. However, in the last trading session, the rupee managed to gain 10 paisa against euro, which was trading at Rs113 and Rs113.50 at the close of the week on December 10. This brings cumulative gain of 95 paisa in rupee value against the European single common currency this week. However, the rupee has depreciated by Rs5.40 against euro in the past six months. The euro was at Rs107.60 and Rs108.10 on July 10 this year.

In the international financial market, the euro fell against the dollar on the opening day of the week. It was down 0.9 percent at $1.3301, coming off a session low of $1.3246 on trading platform EBS. The euro had earlier fallen more than one per cent to near $1.3250 as traders took profits on its recent three-day climb. Against the Japanese currency, the dollar was flat at 82.63 yen, climbing off last weekend’s three-week low of 82.52 yen in late New York trade. In London, sterling fell 0.6 percent to $1.5685, tracking losses in the euro versus the US currency.

On December 7, the dollar rose 1 percent to 83.50 yen on track for its biggest daily percentage gain since September 15. Despite the rise in the dollar, some analysts said deteriorating US fiscal positions could pose risks to the currency in the medium to long term. The euro last traded down 0.3 percent at $1.3262 having hit a session high of $1.3401 on trading platform EBS. Sterling rose to its highest in nearly two weeks against the dollar. It was up 0.6 per cent at $1.5806, having hit $1.5823, its strongest since November 24.

On December 8, the dollar headed for its biggest three-day advance versus the yen in nearly three months. The dollar last traded up 0.7 per cent at 84.04 yen after hitting a session high at 84.31 yen on trading platform EBS. The dollar is on track for a gain of 1.7 per cent versus the yen in the past three sessions, the biggest since mid-September. Sterling fell 0.2 per cent against the dollar at $1.5723, pulling away from a high of $1.5823 hit a day earlier, its strongest since November 24.

At the close of the week on December 10, the dollar stood firm against the euro. In early New York trade, the euro was 0.28 per cent lower at $1.3205, but above the session’s low of $1.3201. Against the Japanese currency, the greenback was up 0.23 per cent at 83.87 yen with stops lined up below 83 yen.