THE rupee continued its downward trend against the dollar in the interbank market last week, as demand for the foreign currency was said to have remained high. However, it recovered some lost ground in the open market.

In the interbank market, the local currency commenced the week by shedding five paisas, sending the dollar up at Rs101.05 and Rs101.10 against the prior week’s close of Rs101.00 and Rs101.05.

However, it picked up eight paisas for buying and 10 paisas for selling in the second trading session, pushing the greenback slightly lower at Rs100.97 and Rs101.00. The rupee gained another five paisas in the third trading session, as the dollar dipped to Rs100.92 and Rs100.95.

But the dollar rebounded in the fourth trading session, gaining 13 paisas for buying and 15 paisas for selling to end the day at Rs101.05 and Rs101.10. It rose by a further three paisas for buying but remained unchanged for selling in the fifth trading session, closing the week at Rs101.08 andRs101.10.

As a result, the dollar appreciated by eight paisas for buying and five paisas for selling last week in the interbank market. It also gained a net 30 paisas against the rupee in January.

The rupee depreciated by around eight paisas against the dollar in interbank dealings but appreciated by 20 paisas in the open market last week

In the open market’s first trading session, the rupee-dollar parity remained unchanged at the prior week’s close of Rs101.60 and Rs101.80. The rupee then gained 10 paisas in the second trading session, pushing the dollar down to Rs101.50 and Rs101.70. It picked up another 30 paisas in the third trading session, as the greenback dropped to Rs101.20 and Rs101.40.

However, the dollar regained 15 paisas in the fourth trading session to end the day at Rs101.30 and Rs101.50. It rose by a further 10 paisas in the last trading session to close the week at Rs101.40 and Rs101.60. The rupee thus rose by a net 20 paisas against the dollar in the open market last week.

Meanwhile, the rupee’s winning streak against the euro finally ended last week. It commenced last week by gaining 35 paisas in the first trading session, sending the euro lower at Rs113.85 and Rs114.10, against the prior week’s close of Rs114.20 and Rs114.45.

However, it shed 25 paisas in the second trading session, as the euro ended the day up at Rs114.10 and Rs114.35. The rupee then lost a big 90 paisas in the third trading session, as the euro ended January 28 at Rs115.00 and Rs115.25.

The rupee managed to recover 50 paisas in the fourth trading session, sending the single currency slightly lower at Rs114.50 and Rs114.75. However, it lost 50 paisas in the last trading session, as the euro closed the week at Rs115.00 and Rs115.25.

During the week, the rupee suffered a fall of 80 paisas against the euro. Yet, it still managed to gain 550 paisas against the single currency in January.

Published in Dawn, Economic & Business, February 2nd, 2015

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