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In the local currency market, the rupee this week showed a stable trend and resisted sharp declines versus dollar and euro, trading in narrow ranges.
No major development was observed in the local market amid quiet trading.
There was no rush for dollar purchases this week. The week commenced on a negative note on the interbank market where the rupee lost five paisa versus dollar and traded at Rs90.17 and Rs90.20 in the opening session against last week close of Rs90.12 and Rs90.15.
The rupee further shed five paisa on the buying counter and four on the selling counter before closing the day against dollar in the second trading session at Rs90.22 and Rs90.24.
In the third trading session, the rupee staged a modest recovery, pushing dollar slightly lower at Rs90.16 and Rs90.18 after picking up six paisa against the dollar.
However, the dollar bounced back against the rupee in the fourth trading session and climbed at Rs90.22 and Rs90.26 after the rupee shed six paisa on January 26.
The rupee/dollar parity in the last trading session stood firm as the rupee closed the week unchanged at Rs90.22 and Rs90.26 against the dollar. In the interbank market, the rupee this week shed 10 paisa against the dollar.
In the open market, the rupee this week resisted sharp declines versus dollar amid fluctuations.
It gained 25 paisa on the buying counter and 40 paisa on the selling counter on the opening day of the week when it traded at Rs90.15 and Rs90.20 as compared to previous weekend’s Rs90.40 and Rs90.60.
It, however, lost 20 paisa on the buying counter and 35 paisa on the selling counter and traded against the dollar at Rs90.35 and Rs90.55 in the second trading session.
The rupee rebounded in the third trading session, pushing dollar slightly lower at Rs90.30 and Rs90.50 after the rupee posted 5 paisa gain. The rupee extended its overnight firmness versus dollar in the fourth trading session which traded at Rs90.20 and Rs90.40 after 10 paisa gain in the rupee value.
In the last trading session, the rupee suffered five paisa decline versus dollar and closed the week at Rs90.25 and Rs90.45 on January 27. On week over week basis, however, the dollar in the open market suffered 15 paisa decline against the rupee this week.
Versus the European single common currency, the rupee moved both ways in narrow ranges this week.
The week commenced on a positive note with the rupee rising 14 paisa and trading at Rs116.21 and Rs116.71 in the first trading session after closing last week at Rs116.35 and Rs116.85.
In the second trading session, however, euro rebounded sharply after the rupee failed to hold its overnight firmness and posted a loss of Rs1.23, trading at Rs117.44 and Rs117.94 on January 24. The rupee traded mixed in the third trading session versus euro. It rose by 44 paisa on the buying counter but shed 6 paisa on the selling counter, changing hands at Rs117.00 and lost six paisa for selling at 118.00.
On January 26, the rupee suffered sharp losses versus euro, slipping by 73 paisa on the buying counter and another 23 paisa on the selling counter at Rs117.73 and Rs118.23.
Finally, the week ended on a negative note as the rupee decline versus euro persisted in the last trading session. The rupee posted 10 paisa loss before closing the day at Rs117.83 and Rs118.33. During this week, the rupee shed Rs1.48 against euro on cumulative basis.
On the international front, the euro swung to its highest level against the dollar in nearly three weeks in the New York first trading session, up 1.3 per cent at $1.3034, but down from a session high of $1.3052, its highest level since early January.
Against the yen, the dollar traded up 0.1 per cent at 76.98. Sterling hit a two-week high against the dollar in London trade and was last up 0.1 per cent at $1.5588, having risen to a session peak of $1.5602, its highest level since January 5.
On January 24, the euro retreated from a near three-week high against the dollar, nearly unchanged at $1.3024 in New York second trading session.
The dollar rose to a near four-week high of 77.84 yen before trading at 77.72 yen, up 0.9 per cent. Against the dollar, sterling was steady at $1.5585 in London, just below a three-week high of $1.5602 hit on January 23. Sterling has gained 0.5 per cent against the dollar this year.
On January 25, the dollar dropped to its lowest level against the euro in five weeks. In late New York trade the euro was up 0.7 per cent at $1.3114. The dollar reached as high as 78.28 yen, its highest level since early November.
The greenback was last trading at 77.74 yen, up 0.1 per cent on the day. Sterling fell against the dollar in London, down 0.3 per cent against the dollar at $1.5573, fading from a three-week high of $1.5629 hit overnight. Sterling/dollar has been weak in the last month.
On January 26, the euro traded roughly unchanged against the dollar after earlier hitting a five-week high of $1.3184 before paring gains to trade at $1.3100, unchanged on the day.
Against the Japanese currency, the dollar slipped 0.4 per cent to 77.48 yen. Sterling rose to $1.5719, its strongest since December 22. Further gains could see it target the December 21 high of $1.5775, though traders cited offers at around $1.5730. It was trading around $1.5693 late in the London trade.
At the close of the week on January 27, the euro rose against the dollar, climbing to $1.3192, up 0.68 per cent at midday in New York.
The dollar fell nearly one per cent to 76.67 yen, leaving the yen on track for its biggest daily gain since late August. Sterling rose against the dollar, trading within sight of a five-week high, up 0.1 per cent on the day at $1.5699, having earlier hit a session high of $1.5730. The UK currency was on track for its second straight week of gains after hitting a five-week high of $1.5735 on January 26.
