Despite continued uncertainty over the political front and weakening of some macro-economic indicators, the local currency market witnessed slight improvement last week.
On the interbank market, the rupee commenced last week in negative on increased dollar demand from importers.
Extending weekend weakness against the dollar, it changed hands against the rupee at Rs105.44 and Rs105.45 on Monday against the last closing at Rs105.38 and Rs105.40.
Against the euro, the rupee showed divergent trend last week
Though some demand for dollar existed in the market, the rupee did not show any change against the dollar on Tuesday trading flat at Rs105.44 and Rs105.45.
On Wednesday and Thursday the parity showed a stable trend as a result, the rupee-dollar parity traded flatly at Rs105.44 and Rs105.45.
Finally, on Friday the rupee ended on a positive note with dollar changing hands at Rs105.40 and Rs105.42.
In the open market, the rupee witnessed the trend of upward correction in major currencies last week. The SBP move to restrict panic trading that prevailed for almost two weeks provided positive results. The rupee was seen recovering against the dollar.
Extending weekend firmness, the rupee commenced the week in plus. On Monday it pushed the dollar down to Rs107.40 and Rs107.60 from the prior week close at Rs107.50 and Rs107.70.
The dollar downslide against the rupee persisted on Tuesday. The dollar further slipped to Rs107.30 and Rs107.50.
The rupee continued its upward march against the dollar on Wednesday pushing the dollar to almost three-week lows at Rs107.20 and Rs107.40.
The parity did not show any change on Thursday and Friday as the rupee continued to trade flat at Rs107.20 and Rs107.40, amid normal dollar demand.
Against the euro, the rupee showed divergent trend last week, trading between the low of Rs124.60/Rs125.85 and high of Rs123.80/Rs125.05.
The week commenced on a positive when euro drifted lower at Rs124.30 and Rs125.55 on Monday.
Extending overnight firmness against the euro, the rupee pushed euro further down to the week’s lowest level at Rs123.80 and Rs125.05 on Tuesday.
On Wednesday the euro was quoted at Rs124.00 and Rs125.05 against the rupee.
On Thursday the rupee continued its downslide against the euro, changing hands at Rs124.60 and Rs125.85, its highest level against the rupee in the week.
The rupee did not show any change on Friday and closed the week flat at Rs124.60 and Rs125.85 against the euro.
Published in Dawn, The Business and Finance Weekly, November 13th, 2017