THE rupee/dollar parity continued to trade range-bound for the third consecutive week, moving both ways on the interbank market.

Commencing the week on a positive note, the rupee in the first trading session inched up by one paisa and two paisas on the buying and selling counters respectively. The dollar slipped slightly lower at Rs104.85 and Rs104.86 from the previous weekend levels of Rs104.86 and Rs104.88 due to sluggish demand for imports as well as corporate payments and stagnant inward inflows.

In the second session, the dollar managed to recover after the rupee lost one paisa and two paisas on both the counters and the dollar retrieving its Rs104.86 and Rs104.88 level.

Against the euro, the rupee gained 75 paisas and 50 paisas on the buying and selling counters respectively, on a WoW basis

The parity was marginally changed in the third session with the rupee recovering one paisa on the selling counter only.

In the fourth session, a slowdown in the dollar demand helped the local unit trade on stable note. The rupee managed to gain one paisa against the dollar on both the counters to trade at Rs104.85 and Rs104.86.

The week closed on a negative note as the rupee shed one paisa, pushing dollar back to Rs104.86 and Rs104.87.

During the week, the rupee gained and lost two paisas in two sessions each and traded flat in one session on the buying counter. On the selling counter, the rupee gained four paisas in three sessions and lost three paisas in two sessions.

The dollar on the interbank market lost one paisa against the rupee on a WoW basis.

In the open market, the rupee remained depressed in the open currency market on the back of slightly improved demand for dollar from private sector buyers.

Against the euro, the rupee in the first trading session posted 20 paisas gain, drifting the euro at Rs118.80 and Rs119.80.

The rupee in the first trading session posted 20 paisas gain that drifted euro slightly lower at Rs118.80 and Rs119.80 from the prior week’s Rs119.00 and Rs120.

In the second session, the euro traded flat at Rs118.80 and Rs119.80, unchanged against the rupee for the second straight day.

In the third session, rupee picked up 40 paisas at Rs118.40 and Rs119.40.

The rupee in the fourth session lost its overnight firmness as the euro managed to recover overnight losses after the rupee shed 40 paisas and revert back to the June 6 level at Rs118.80 and Rs119.80.

In the last session, the rupee managed to recover 55 paisas and 30 paisas on the two counters respectively.

As a result, the euro closed the week at Rs118.25 and Rs119.50. During the week, the euro lost Rs1.15 and 90 paisas on the buying and selling counters respectively in three sessions and at the same time gained 40 paisas in one session.

Against the euro, the rupee gained 75 paisas and 50 paisas on the buying and selling counters respectively, on a WoW basis.

Published in Dawn, The Business and Finance Weekly, June 12th, 2017