THE rupee remained largely stable against both the dollar and the euro in the local currency market last week.

And the central bank’s decision to allow forex companies to import dollars through Karachi’s Jinnah Airport led to the greenback dropping back into the Rs102 range after having crossed the Rs103-mark over the past two weeks.

In the interbank market, the rupee started the week by inching up by one-paisa and sending the dollar marginally lower at Rs101.83 and Rs101.84 in the first trading session, against the prior week’s closing level of Rs101.84 and Rs101.85.

The rupee-dollar parity then remained unchanged at this level in the second trading session.

The dollar depreciated by six paisas against the rupee in interbank dealings and by 15 paisas in the open market last week

The rupee then picked up one-paisa in the third trading session, as the dollar ended the day at Rs101.82 and Rs101.83. The rupee rose by a further three paisas in the fourth trading session, sending the dollar lower at Rs101.79 and Rs101.80.

The rupee gained another paisa in the last trading session, as the dollar closed the week at Rs101.78 and Rs101.79. During the week, the dollar depreciated by six paisas in the interbank market.

Chart by RA

In the open market, the rupee commenced the week by losing five paisas, sending the greenback up at Rs103.00 and Rs103.20 against the prior week’s close of Rs102.95 and Rs103.15.

However, it managed to recover 20 paisas in the second trading session, as the dollar dropped to Rs102.80 Rs103.00. The rupee gained a further 10 paisas in the third trading session, sending the dollar down at Rs102.70 Rs102.90.

However, the greenback bounced back in the fourth trading session, picking up 10 paisas to end the day at Rs102.80 Rs103.00. The rupee-dollar parity then remained unchanged at this level in the last trading session.

Yet, the dollar depreciated by a net 15 paisas against the rupee in the open market last week.

Meanwhile, the rupee displayed an overall stable performance against the euro last week, amid fluctuations. It commenced the week by losing 60 paisas, allowing the euro to rise to Rs112.60 and Rs113.60 in the first trading session against the previous week’s close of Rs112.00 and Rs113.00.

However, the rupee bounced back in the second trading session, gaining 40 paisas and sending the euro down to Rs112.20 and Rs113.20. But the rupee drifted lower by 10 paisas in the third trading session, as the single currency rose to Rs112.30 and Rs113.30 for the day.

The rupee then rebounded by 50 paisas in the fourth trading session, sending the euro down to Rs111.80 and Rs112.80. But, keeping up with the see-saw trend, the local currency shed 20 paisas in the last trading session, allowing the euro to close the week at Rs112.00 and Rs113.00.

Published in Dawn, Economic & Business, August 3rd, 2015

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