In the local currency market, the rupee came under slight pressure against the dollar, last week, as the strengthening greenback — against its major rivals in overseas trade — capped rupee gains in the domestic market towards the weekend.

On the interbank market last week, the rupee traded against the dollar in narrow ranges, moving both ways amid lacklustre demand and dull trading activity.

In the last trading session, the rupee suddenly turned negative against the dollar. It shed ten-paisa before closing the week at Rs104.64 and Rs104.65, hitting its lowest level in the week against the dollar.

Against euro, the rupee rebounded sharply in the last trading session, closing the week on a positive note

The rupee came under pressure as the market turned a little volatile on sudden surge in dollar demand from importers after Sterling lost a tenth of its value in minutes and plunge to a fresh 31-year-low before quickly recouping losses in Asia’s thin early trade.

During the week, the dollar on the interbank market lost up to 12paisa in three sessions and at the same time recovered 15paisa in two sessions. The rupee, however, lost four-paisa on the buying counter and three-paisa on the selling counter against the dollar on week on week basis.

In the open market, the rupee/dollar parity exhibited a similar trend in line with interbank market.

The dollar, rebounded in the last trading session after the rupee lost ten-paisa in the last trading session and plunged to almost a three-week low at Rs105.20 and Rs105.40 at the close of the week.

The local market noticed that the rupee came under pressure towards the close of the week on the sudden rise in dollar demand after the dollar, in overseas trade, fell against its major rivals, snapping a four-day streak of gains, following the release of the September US employment report that revealed fewer jobs, not enough to change the Federal Reserve’s stance on raising interest rates.

During the week in review, the rupee lost against the dollar 20paisa in two sessions while gaining five-paisa in one session and remaining unchanged in two sessions, hovering between the high of Rs105.10/20 and low of Rs105.20/40.

On week on week basis, the dollar in the open market managed to gain 15paisa against the rupee.

Against euro, the rupee weakened last week after moving both ways in tight range. It rebounded sharply against the euro in the last trading session, closing the week on a positive note.

It gained 90paisa before closing the week at Rs116.60 and Rs118.10 after losing 50paisa in the previous three sessions.

Against the rupee, the euro lost Rs1.55 in three sessions while gaining 75paisa in two sessions on the buying counter in the week.

On the selling counter, the euro lost Rs1.90 in two sessions and gained 95paisa in three sessions.

On week over week basis, the rupee still managed to gain up to 90 paisa against the euro last week.

Published in Dawn, Business & Finance weekly, October 10th, 2016