After consistently shedding value against the dollar over the past few weeks, the rupee staged a modest recovery last week.

Some positive news flow in the four-day week was said to have improved the local currency’s standing, as the outlook for the country’s bond rating was raised from stable to positive by Moody’s.

On the interbank market, the rupee started the week on Tuesday (Monday being a public holiday on account of Pakistan Day) by rising six paisas, sending the greenback down to Rs101.99 and Rs102.04, against the prior week’s close of Rs102.05 and Rs102.10.

The rupee then dipped by one-paisa for buying and stayed unchanged for selling in the second trading session, as the dollar ended the day marginally higher at Rs102.00 and Rs102. 04. In the third trading session, the rupee stayed unchanged for buying but lost two paisas for selling, sending the dollar to Rs102.00 and Rs102.02.

The rupee then managed to pick up 12 paisas in the last trading session, as the dollar slipped to Rs101.88 and Rs101.90 at the week’s close. As a result, the dollar depreciated by 17 paisas for buying and 16 paisas for selling last week. Yet, the greenback is up a big 373 paisas on a year-on-year basis in the interbank market, according to independent reports.

The rupee appreciated by around 16 paisas in interbank dealings and by 30 paisas in the open market last week

In the open market, the rupee showed a stable trend against the dollar. In the opening session, the rupee-dollar parity remained unchanged at the prior week’s close of Rs102.40 and Rs102.60. The parity also did not move in the second trading session.

After trading unchanged in the previous two sessions, the rupee posted a gain of 20 paisas in the third trading session, sending the dollar to Rs102.20 and Rs102.40 for the day. The local currency rose by a further 10 paisas in the last trading session, as the dollar closed the week at Rs102.10 and Rs102.30.

Therefore, the rupee appreciated by 30 paisas against the dollar in the open market last week.

Meanwhile, the rupee witnessed a see-saw movement against the euro last week. It started the week with a big loss of 155 paisas, which sent the single currency to Rs111.80 and Rs112.05 in the first trading session, against the prior week’s close of Rs110.25 and Rs110.50.

The rupee slipped by another 20 paisas in the second trading session, as the euro rose to Rs112.00 and Rs112.25 for the day.

However, the rupee managed to bounce in the third trading session as it picked up 25 paisas, sending the euro slightly down to Rs111.75 and Rs112.00. The rupee then posted a further gain of 125 paisas in the last trading session, sending the euro down to Rs110.50 and Rs110.75 at the close of the week.

During the week, the euro rose by a net 25 paisas. Yet, on a yearly basis, the rupee is up a big Rs27.50.

Published in Dawn, Economic & Business, March 30th , 2015

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