THE rupee lost strength against both the dollar and the euro last week. Positive news flow in the week, including the approval of the latest IMF loan tranche and the country’s forex reserves hitting a record high of $20bn, failed to prop up the local currency.

On the interbank market, the rupee commenced last week by losing 11 paisas, allowing the dollar to rise to Rs104.49 and Rs104.51 in the first trading session over the prior week’s closing level of Rs104.38 and Rs104.40.

In the second trading session, the rupee inched down by one-paisa for buying but stayed unchanged for selling, with the dollar ending the day at Rs104.50 and Rs104.51. The rupee did not show any change for buying but shed two paisas for selling in the third trading session, with the dollar last changing hands at Rs104.50 and Rs104.53.

In the fourth trading session, the rupee traded flat for buying but inched up by one-paisa for selling, as the dollar slipped to Rs104.50 and Rs104.52. The rupee then traded unchanged for buying, but gained one-paisa for selling in the last trading session, as the greenback closed the week at Rs104.50 and Rs104.51. During the week, the dollar gained a net 12 paisas against the rupee in the interbank market.

The dollar appreciated by 12 paisas against the rupee in interbank dealings and by 10 paisas in the open market last week

The rupee also remained under pressure against the dollar in the open market. It commenced the week by shedding five paisas, with the dollar ending the first trading session at Rs104.25 and Rs104.45 against the prior week’s close of Rs104.20 and Rs104.40.

It lost another five paisas in the second trading session, with the dollar climbing to Rs104.30 and Rs104.50 for the day. The local currency then dropped by 10 paisas in the third trading session, sending the dollar up at Rs104.40 and Rs104.60.

However, it managed to recover five paisas in the fourth trading session, as the dollar slipped to Rs104.35 and Rs104.55. The rupee gained another five paisas in the last trading session, as the dollar closed the week at Rs104.30 and Rs104.50. As a result, the dollar appreciated by a net 10 paisas against the rupee last week.

Against the euro, the rupee commenced the week by losing 75 paisa, sending the euro to Rs115.75 and Rs116.75, against the prior week’s close of Rs115.00 and Rs116.00.

The rupee shed a further 75 paisas in the second trading session, with the euro ending the day at Rs116.50 and Rs117.50.

However, the rupee managed to regain 75 paisas in the third trading session, with the euro ending the day at Rs115.75 and Rs116.75. The rupee picked up another 25 paisas in the fourth trading session, as the euro dropped to Rs115.50 and Rs116.50.

However, the euro regained 30 paisas in the last trading session and closed the week at Rs115.80 and Rs116.80. As a result, the euro appreciated by 80 paisas last week.

Published in Dawn, Business & Finance weekly, October 5th , 2015

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