In the local currency market, both the dollar and euro remained depressed against the rupee last week.
Trading activity was dull in the absence of dollar buyers amid comfortable level of US currency supplies. The rupee continued to trade in a narrow-range on thin volume.
The rupee/dollar parity maintained its previous weekend levels unchanged in all the five trading sessions as the currency market remained subdued. Consequently, the week ended flat at Rs105.40 and Rs105.41.
Overall, the rupee on the interbank market opened the week flat at Rs105.40 and Rs105.41 and closed the week unchanged against the dollar at the same level.
In the open market, however, the rupee traded slightly stronger as the dollar remained mostly depressed owing to dull demand in the absence of leading currency players. The rupee commenced the week unchanged against the dollar, maintaining its prior weekend levels flat at Rs105.70 and Rs105.90 on Monday.
On Tuesday, however, the dollar extended losses against the rupee as demand and supply of dollar remained at a comfortable level. As a result, the rupee managed to post ten-paisa gain against the dollar which slipped to almost a four- and- a-half-month low at Rs105.60 and Rs105.80.
The euro ended the week at Rs125.30 and Rs126.70 on the buying and selling counters respectively
The parity did not show any change on Wednesday.
The rupee lost its ground against the dollar on slight pickup in dollar demand on Thursday when the dollar staged a ten-paisa recovery and revert back to the week’s opening position at Rs105.70 and Rs105.90.
The dollar traded firm against the rupee on Friday as the parity did not show any change in its overnight levels and closed the week flat at Rs105.70 and Rs105.90.
The parity also traded flat in the open market on week on week basis.
Against euro, the rupee last week depicted a firm trend. After hitting almost a five-week low against the euro in the previous week, the rupee staged a sharp rebound. Consequently, the euro slipped to Rs125.50 Rs126.50.
On Tuesday, the euro downslide versus the rupee persisted, changing hands against the euro at Rs125.00 and Rs126.50.
After firmly trading in the first two trading session, the rupee lost ground against the euro on Wednesday when the euro managed to stage a smart recovery. The rupee dipped to Rs125.40 Rs126.70.
However, the rupee was quick to stage a rebound against the euro on Thursday and hit its highest levels in past two weeks after the euro gave up its overnight firmness, posting losses that pushed the rupee at Rs124.50 Rs126.00, a level last seen on August 15.
Finally the euro ended the week on a firm note against the rupee, at Rs125.30 and Rs126.70.
But on week on week basis, the rupee stood firm against the euro.
Published in Dawn, The Business and Finance Weekly, September 18th, 2017