The local currency market witnessed highly speculative trading last week. The rupee came under extensive pressure due to panic buying and selling of dollar in the absence of SBP intervention during the week.

On the interbank market, the rupee came under tremendous devaluation pressure against the dollar last week. Commencing the week in negative, the rupee lost against the dollar on Monday and slipped to Rs108.25 and Rs108.75 from the previous weekend levels of Rs106.75 and Rs107.25.

The rupee further plunged on Tuesday, with the dollar hitting a fresh peak at Rs110.25 and at Rs110.50. The rupee downtrend persisted on Wednesday pushing the dollar to its highest level at Rs110.45 and Rs110.55 in the past four years.

On Thursday, dollar drifted slightly lower at Rs110.10 and Rs110.20. Failing to hold its overnight firmness against the dollar, the rupee on Friday again turned negative and tumbled to Rs110.40 and Rs110.50.

During the week, the dollar on the interbank market gained Rs3.65 on the buying counter and Rs3.25 on the selling counter.

Currently the rupee is trading at record lows against the dollar on the interbank market In the open market, the rupee came under renewed devaluation pressure against the dollar after it broke Rs108 barrier and plunged to all time low at.

Currently the rupee is trading at record lows against the dollar on the interbank market

On Monday unexpected surge in dollar demand enabled it to edge higher, at Rs108.50 and Rs108.80 against the last closing at Rs107.30 and Rs107.80.

On Tuesday the rupee extended its overnight weakness, hitting all-time new lows after crossing historic barriers at Rs110.80 and Rs112.00.

However, the rupee turned positive on Wednesday trading at Rs110.30 and Rs110.80 per dollar

On Thursday, the rupee rose against the dollar to Rs109.80 and Rs110.30 and on Friday the parity did not show any change, closing the week at Rs109.80 and Rs110.30.

Against euro, the rupee assumed downtrend last week, trading in minus on Monday the euro changed hands at Rs126.75 and Rs128.00.

On Tuesday, the rupee continued its downslide against the euro trading at Rs127.50 and Rs129.50.

On Wednesday the euro continued its upward ride, hitting fresh peak at Rs128.00 and Rs129.80.

On Thursday the rupee hit record lows at Rs128.25 and Rs130.00 and on Friday the rupee plunged to Rs128.50 and Rs130.50.

Published in Dawn, The Business and Finance Weekly, December 18th, 2017