Last week in the local currency market, the rupee/dollar parity continued to show a steady trend amid slight variations in the presence of low dollar demand in the week’s early sessions.

Tightened rules regarding foreign exchange management to check outflows and to stabilise the domestic currency appear to be working. Market activity continues to remain dull, though demand for dollar exists.

Domestic politics continues to dampen mood and hurt confidence with investors anxiously awaiting the Panama verdict.

As a result, the dollar demand was seen firming up, thus putting some pressure on the rupee in week’s last trading session.

On the interbank market, the rupee/dollar parity continued steady last week. The rupee traded in tight band against the dollar amid minor changes.

It commenced the week flat showing no change over the last closing levels.

In the last trading session, the rupee posted one-paisa gain on the buying counter and two-paisa gain on the selling counter before closing the week at Rs104.85 and Rs104.86.

The dollar on the interbank market ended the week almost flat against the rupee owing to insignificant demand

On week over week basis, the rupee thus suffered a net loss of one-paisa. The dollar on the interbank market still ended the week almost flat against the rupee owing to insignificant demand.

In the open market, trading activity remained dull as certain import restrictions curbed the demand for the greenback last week.

The rupee/dollar parity traded range-bound amid slight variations. Retaining its weekend levels, the rupee traded unchanged against the dollar at Rs106.10 and Rs106.30 in the first trading session.

Average market activity was recorded in the last trading session. However, advance payment demand on the last day of the week exerted slight pressure on the local currency.

The rupee continued its downslide against the dollar for the second successive day. It further shed five-paisa and closed the week slightly down at Rs106.15 and Rs106.35, close to a level last seen on Nov12, 2016.

On week on week basis, however, the dollar in the open market ended little depressed despite net five-paisa gain against the rupee.

Against euro, the rupee traded in tight range, moving both ways last week and hovering between the low of Rs113.00/Rs114.50 and high of Rs112.60/Rs114.10.

The rupee turned negative against the euro in the week’s opening session and was seen changing hands at Rs112.60 and Rs114.10 in the first trading session.

In the fourth trading session the rupee picked up 20paisa to trade at Rs112.80 and Rs114.30.

On week on week basis, the euro ended flat at Rs112.50 and Rs114.00.

Published in Dawn, Economic & Business, April 10th, 2017