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Rupee trades firm against dollar

August 14, 2017

In the local currency market, no major development was witnessed last week amid sluggish trading activity.

According to analysts, commercial banks helped the rupee trade firmly versus the dollar and euro amid slight variations.

Insignificant demand from the corporate sector and importers kept the dollar flat against the rupee in the interbank dealings.

In the open market, however, the dollar traded firm owing to soft dollar demand.

On the interbank market last week, the rupee/dollar parity continued to show a stable trend for the second consecutive week due to lack of trading interest amid dull demand.

On Monday the dollar was unchanged against the rupee at Rs105.39 and Rs105.40 amid lacklustre trading activity.

Trading flat for the next four days, the rupee closed the week unchanged against the dollar at Rs105.39 and Rs105.40.

In the open market, the rupee last week turned negative against the dollar on Monday after ending the previous week on a firm note at Rs106.70 and Rs106.90 against the last closing at Rs106.60 and Rs.106.80 due to slight pickup in dollar demand.

For the next three days, the dollar remained dull against the rupee as the parity did not show any change.

Insignificant demand from the corporate sector and importers kept the dollar flat against the rupee

As a result, the dollar continued to trade unchanged against the rupee at Rs106.70 and Rs106.90 for four straight days following flat demand from corporate and private sector in interbank.

On Friday, however, the rupee turned negative against the dollar in the last trading session trading at Rs106.80 and Rs107.00.

Against euro, the rupee escalated in a narrow band last week, hovering between the high of Rs124.60/Rs125.60 and low of Rs125.60/Rs126.60.

On Monday the euro was seen changing hands at Rs125.30 and Rs126.30 against the prior weekend level of Rs125.00 and Rs128.00.

On Tuesday the rupee continued its downslide against the euro, consequently, the euro rose to the week’s highest level at Rs125.60 and Rs126.60.

But on Wednesday the euro lost it firmness after the rupee staged a sharp rebound, that pushed the euro to almost a two-week low at Rs124.80 and Rs125.80, a level last seen on July 27.

On Thursday the rupee continued its upward march for the second successive day, pushing euro further down to Rs124.60 and Rs125.60, a level last seen on July 24.

The rupee failed to hold its overnight firmness against the euro on Friday and was seen changing hands against euro at Rs125.00 and Rs126.00 at the close of the week.

Published in Dawn, The Business and Finance Weekly, August 14th, 2017