TRADING activity remained suspended in the first three trading sessions on account of Eid holidays in the local currency market.

The rupee moved both ways against the dollar and euro after trading resumed on June 29.

On the interbank market last week, the rupee/dollar parity fluctuated in Rs104.78/80-104.89/90 range.

A rise in the dollar demand kept the exchange rate a little volatile in the opening session. The rupee slipped to Rs104.89 and Rs104.90 against the last closing at Rs104.87 and Rs104.88 after posting two paisas loss on the buying counter and one paisa loss on the selling counter.

Over the past six months, the rupee has fluctuated amid 6pc depreciation against the euro

The parity ended on a firm note and the rupee maintained its stable trend and closed the session at Rs104.86 and Rs104.88 following a slight upward variation of three paisas on the buying counter and gained two paisas on the selling counter.

Last week, the dollar on the interbank market lost one paisa against the rupee on the buying counter but remained unchanged on the selling counter on a week-on-week basis. The rupee has suffered 0.04pc depreciation against the dollar in the first half of 2017.

In the open market last week, the rupee in the opening session posted a 10 paisas gain against the dollar amid sluggish demand that drifted the dollar lower at Rs105.80 and Rs106 against the previous weekend’s levels of Rs105.90 and Rs106.10.

In the last trading session the rupee/dollar parity maintained its overnight levels unchanged, closing the week flat at Rs105.80 and Rs106. As a result, the foreign exchange market concluded on a stable note due to soft dollar demand and lack of interest from the major players.

On a week-on-week basis, the dollar in the open market, however, lost 10 paisas against the rupee last week. Over the past six months, the, parity has suffered sharp fluctuations, trading in the Rs108.40/60 and Rs105.80/106 range.

However, the rupee appreciated against the dollar by 2.2pc in the first six months of 2017.

Against euro, the rupee commenced the week in minus. It suffered a sharp loss of Rs1.80 that enabled euro to rise in the week’s opening session to Rs119.80 and Rs120.80, its highest level in almost 15 months, which was a marked jump from the prior weekend levels of Rs118 and Rs119.

The rupee downslide against the euro persisted in the last trading session. The euro managed to breach Rs120-mark and hit a fresh peak against the rupee at Rs120 and Rs121, its highest level since January 2015.

During the week, the rupee suffered a loss of Rs2 against the euro on a week-on-week basis. Over the past six months, the rupee has fluctuated in the range of Rs111.50/112.50 and Rs120/121 amid 6pc depreciation against the euro.

Published in Dawn, The Business and Finance Weekly, July 3rd, 2017